The P/E ratio is determined by
A) The required rate of return.
B) The expected dividend payout ratio.
C) The expected growth rate of dividends.
D) Choices a and b
E) All of the above

Question

Quizplus · Accepted Answer

The P/E ratio is influenced by the required rate of return, the expected dividend payout ratio, and the expected growth rate of dividends, as all these factors affect a company's valuation and investor expectations.

The P/E Ratio Is Determined by