If the Dividend Growth Rate Increases for a Firm,its P/E

question 13

Multiple Choice

If the dividend growth rate increases for a firm,its P/E will ---------,other things the same.

• A)increase
• B)stay the same
• C)decrease
• D)increase or decrease but not stay the same

---

Definitions:

World War II

A global military conflict that lasted from 1939 to 1945, involving most of the world's nations including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Fifth Freedom

A term coined during World War II representing the freedom to access resources; it extends the Four Freedoms President Franklin D. Roosevelt spoke of.

Political Conservatism

A political and social philosophy promoting traditional institutions, limited government, and a free-market economy.

Bracero Program

A mid-20th century labor agreement between the United States and Mexico, allowing Mexican agricultural workers temporary work permits in the U.S.