Which of the Following Will Increase the P/E Ratio, Everything

question 59

Multiple Choice

Which of the following will increase the P/E ratio, everything else being constant?
I. A decrease in the number of shares outstanding
II. An increase in net income
III. A decrease in the earnings yield
IV. A decrease in the market price per share

• A) I.
• B) III.
• C) II and IV.
• D) I and III.
• E) I, III and IV.