According to the Price/earnings Approach to Share Valuation, If the Dividend

question 63

Multiple Choice

According to the price/earnings approach to share valuation, if the dividend growth rate is expected to drop or if the required return goes up, the net effect is a

• A) higher P/E ratio.
• B) higher share price.
• C) lower P/E ratio.
• D) higher retention rate.

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Definitions:

U.S. Oil Imports

The procurement of crude oil and petroleum products by the United States from other countries.

CD-Rom Drives

Optical disc drives used in computers for reading data stored on CD-ROMs, a form of storage media commonly used for software and media distribution.

Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries.

United States

A country located in North America, known for its large economy and diverse population.