Other Things Equal,if The

question 39

Multiple Choice

Other things equal,if the:

• A)required rate of return increases,the P/E ratio will rise.
• B)risk premium increases,the P/E ratio will rise.
• C)risk-free rate rises,the P/E ratio will fall.
• D)dividend payout increases,the P/E ratio will fall.

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Definitions:

Bacteria

Single-celled microorganisms that can exist either as independent organisms or as parasites, often playing a vital role in recycling nutrients in ecosystems.

Ribosomal Subunit

A structural component of ribosomes, which comes in two sizes (large and small), necessary for protein synthesis in cells.

Prokaryotic Translation

The process by which mRNA is decoded by a ribosome to produce a specific protein in prokaryotes, organisms without a nucleus.

Initiation Complex

A complex of proteins and RNA that forms on mRNA to begin the process of translating RNA into a polypeptide chain in the cell.