An increase in the required rate of return k will increase the P/E ratio.

Name: An increase in the required rate of return k will increase the P/E ratio.
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An increase in the required rate of return k will decrease the P/E ratio. This is because a higher required rate of return means that investors expect higher returns on their investment, and therefore they are willing to pay less for each dollar of earnings. As a result, the P/E ratio will decrease.

An Increase in the Required Rate of Return K Will