Which of the Following Variables Has an Inverse Relationship with the P/E

question 49

Multiple Choice

Which of the following variables has an inverse relationship with the P/E ratio?

• A)payout ratio
• B)expected growth rate of dividends
• C)expected growth rate of earnings
• D)required rate of return

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Definitions:

Age

A measure of the length of time that a person or object has existed.

Level Of Education

A measure of the highest degree of formal schooling completed or the extent of academic achievement.

Causation

Refers to the relationship between cause and effect, where one action or event directly results in another.

Multiple Choice

A question format that presents a list of options or answers, from which the respondent selects the correct one.