In the Model P/E=(D₁/E₁)/(k - G),the P/E Should Increase If

question 55

Essay

In the model P/E=(D₁/E₁)/(k - g),the P/E should increase if the dividend payout ratio increases,other things the same.If the payout ratio was intentionally increased by the board of directors,other things are likely not to stay the same.What is likely to happen to the dividend growth rate and the required return?

---

Definitions:

Individual Interaction

The exchange or communication between people, which can influence social, psychological, and organizational dynamics.

Job Rotation

A workforce management strategy that involves moving employees between different tasks to promote versatility and reduce monotony.

Job Enlargement

An approach to increase the number and variety of tasks that an employee performs to enhance job satisfaction.

Specialized Jobs

Positions that require a specific set of skills or knowledge in a particular area or field.