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:

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels and do not perceive color.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in bright light conditions.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into neural signals sent to the brain.

Rods

Photoreceptor cells in the retina responsible for vision at low light levels, but not for color vision.