Which one of the following is NOT a fundamental factor that affects the P/E ratio directly?

Question

Quizplus · Accepted Answer

The P/E ratio is affected directly by the expected payout ratio (the percentage of earnings paid out as dividends), the required rate of return (the minimum return investors expect to earn), and the expected growth of dividend (the rate at which dividends are expected to grow). However, preferred shares dividend does not directly affect the P/E ratio as it is a separate class of shares with its own dividend rate and payout structure.

Which One of the Following Is NOT a Fundamental Factor