Which of the Following Is NOT a Major Variable That

question 43

Multiple Choice

Which of the following is NOT a major variable that affects the aggregate stock market earnings multiplier in a country?

• A) required rate of return on common stock in the country
• B) expected growth rate of dividends for the stocks in the country
• C) composite dividend-payout ratio for common stocks in country
• D) composite debt to equity ratio for firms in the country
• E) All of these are correct (that is, all are major variables for a country's aggregate stock market earnings multiplier).

---

Definitions:

Cost of Goods Sold

Expenses specifically related to producing the items that a business markets and sells.

Balance Sheet

This report presents a summary of a firm's financial status by listing its resources, debts, and the equity held by investors on a certain date.

Spreadsheet

A digital tool or program that allows users to organize, calculate, and analyze data across a grid of rows and columns.

Job-Order Costing

An accounting system used to ascertain costs for each job or project separately, often used in manufacturing or service industries where each job is different.