Which of the Following Is not considered in the Price-Earnings

question 103

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 the above are components of P/E ratio
• E) None of the above are components of P/E ratio

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Definitions:

Stable Body Weight

A condition where an individual's body weight remains relatively constant over time, indicating a balance between calorie intake and energy expenditure.

Blood Sugar

The concentration of glucose in the bloodstream, crucial for providing energy to cells throughout the body; its regulation is vital for metabolic health.

Major Source of Energy

Typically refers to carbohydrates, fats, and proteins in the diet, which are essential for providing the body with the necessary fuel to maintain its functions.

Glucose

An essential energy-providing sugar in living entities, also making up a significant part of various carbohydrates.