Which of the Following Variables Affect the P/E Ratio

question 117

Multiple Choice

Which of the following variables affect the P/E ratio?
I. capital structure of a firm
II. amount of dividends to be paid
III. inflation rate
IV. earnings rate of growth

• A) I, II and III only
• B) I, II and IV only
• C) I, III and IV only
• D) I, II, III and IV

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Definitions:

Certificate

A document serving as proof or evidence of ownership or entitlement, such as a certificate of stock, birth certificate, or certificate of completion.

General Partner

A partner in a partnership who has unlimited personal liability for the debts of the business and takes part in its day-to-day management.

Limited Partnership

A business structure where one or more partners have limited liability and are not involved in the day-to-day management, juxtaposed with at least one general partner who has unlimited liability.

RULPA

The Revised Uniform Limited Partnership Act, which is a statute that governs limited partnerships in the states that have enacted it.