Which of the Following Is Most Likely to Result in a Higher

question 32

Multiple Choice

Which of the following is most likely to result in a higher P/E ratio for a firm,other things equal?

• A) Lower growth rate in dividends
• B) Reduction in the stock's required rate of return
• C) Lower dividend yield
• D) Lower stock price

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Definitions:

Marginal Product

The additional output that results from using one more unit of a production input, keeping all other inputs constant.

Fertilizer

A chemical or natural substance added to soil to increase its fertility and promote plant growth.

Corn

A cereal plant that yields large kernels on a cob, used as a staple food in many parts of the world and as animal feed.

Slanderous Campaign Ads

Political ads that make false or misleading statements about an opponent to damage their reputation.