Which of the Following Changes Will Likely Lead to a Higher

question 6

Multiple Choice

Which of the following changes will likely lead to a higher P/E,assuming other factors are equal?

• A)A decrease in the dividend payout ratio
• B)An increase in growth rate of earnings
• C)An increase in the required rate of return
• D)A decrease in the dividend yield

Calculate and interpret coefficients of variation, skewness, and kurtosis as measures of relative dispersion, asymmetry, and peakedness of distributions respectively.

Understand the difference between accrual and cash bases of accounting.

Recognize the importance of adjusting entries in the preparation of financial statements.

Understand the principles of revenue recognition and expense recognition (matching principle).

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Definitions:

Single-Tax Movement

A political and economic ideology that proposes a single tax, typically on land, to replace all other taxes.

Land Rent

Payment made to the owner of land for the right to use the land, distinct from payments made for buildings or other improvements.

Henry George

A 19th-century economist known for his advocacy of a single tax on land value to improve social equity.

Land Rent

The payment made for the use of land, typically based on its value and location.