Exhibit 9-1 USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S) (1) the (1)

question 25

Multiple Choice

Exhibit 9-1
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S) (1) The firm's expected rate of growth of earning per share
(2) The amount of capital invested in growth investments
(3) The rate of return earned on the funds relative to the required rate of return
(4) The required rate of return on the security based on its systematic risk
(5) The firm's dividend payout ratio
(6) The time horizon when these growth investments will be available
-Refer to Exhibit 9-1. In the listing above, which three factors influence the earnings multiple for a stock?

• A) 1, 4, and 5
• B) 1, 4, and 6
• C) 2, 4, and 6
• D) 2, 5, and 6
• E) 4, 5, and 6

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Definitions:

Nonparametric Test

A type of statistical test that does not assume the data comes from a particular distribution, often used when data doesn't meet the assumptions of parametric tests.

Measure of Effect Size

A quantitative expression of the magnitude of a phenomenon or effect size, used to assess the relationship or difference between variables in a statistical analysis.

Expected Frequencies

Expected frequencies refer to the anticipated count of occurrences in each category of a distribution, based on a probability model or theory, used in chi-square testing.

Chi-square Statistic

The chi-square statistic measures how expectations compare to actual observed data, used primarily for categorical data.