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Which of the Following Variables Affect the P/E Ratio

question 38

Multiple Choice

Which of the following variables affect the P/E ratio?
I. capital structure of a firm
II. amount of dividends paid
III. inflation rate
IV. earnings rate of growth


Definitions:

Greater Extraction

Refers to the increased removal of natural resources, such as minerals, fossil fuels, or timber from the environment, often for commercial purposes.

Best Use

The most efficient or profitable use of a resource, property, or asset, taking into consideration its potential to generate the highest return or utility.

Present Value Terms

The current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

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