Which of the Following Statements Is FALSE

question 52

Multiple Choice

Which of the following statements is FALSE?

• A)The higher the expected payout ratio, the higher the P/E.
• B)The higher the expected growth rate, g, the higher the P/E.
• C)The lower the required rate of return, k_c, the lower the P/E.
• D)The relevant input is the expected earnings, not historical earnings.

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Definitions:

Total Resistance

The cumulative resistance faced by current in a circuit, calculated by summing individual resistances in series and applying parallel resistance formulas when appropriate.

27 Ω

A specific resistance value, indicating an object or material has a resistance of twenty-seven ohms.

56 Ω

A specific value of electrical resistance indicating that an object opposes the flow of electric current with a force of 56 ohms.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor, measured in amperes (A).