Price-Earnings (P/E)ratios Can Be Estimated Using Which of the Following

question 40

Multiple Choice

Price-earnings (P/E) ratios can be estimated using which of the following?
I.The required rate of return
II.The expected growth rate of dividends
III.The retention ratio

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

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Definitions:

Sales Salaries Payable

An account representing the salaries owed to sales staff that have been incurred but not yet paid.

Cash Payments

Refers to transactions where cash is paid out by the business, such as to suppliers, employees, or for other expenses.

Current Year

The ongoing year or the period of time that is presently being accounted for in financial or calendar terms.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a share of the company's profits.