试题与答案

All else equal, an increase in a company's

题型:单项选择题

题目:

All else equal, an increase in a company's growth rate will most likely cause its P/E ratio to:()

A. increase.

B. not change.

C. decrease.

答案:

参考答案:A

解析:

Increase in g: As g increases, the spread between ke and g, or the P/E denominator, will decrease, and the P/E ratio will increase.

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