Which of the Following Is NOT Considered in the Price-Earnings

question 118

Multiple Choice

Which of the following is NOT considered in the price-earnings ratio technique?

• A) firm's required rate of return on equity (k)
• B) firm's dividend payout ratio (D/E)
• C) firm's expected growth rate of dividends (g)
• D) All of these are correct (that is, all are components of the P/E ratio).
• E) None of these are correct (that is, none are components of the P/E ratio).

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Definitions:

Percussion Instruments

Musical instruments that produce sound primarily by being struck, shaken, or scraped, such as drums, cymbals, and maracas.

Percussion Instruments

Musical instruments that produce sound by being struck, shaken, or scraped, such as drums or cymbals.

Stringed Instruments

Musical instruments that produce sound by vibrating strings, played either by plucking, striking, or using a bow.

Wind Instruments

Musical instruments that produce sound by the vibration of air in a tube; examples include flutes, clarinets, and trumpets.