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Exhibit 14.1 Use the Information Below for the Following Problem(S)

Question 48

Multiple Choice

Exhibit 14.1
Use the Information Below for the Following Problem(S)
(1) The firm's expected rate of growth of earning per share
(2) The amount of capital invested in growth investments
(3) The rate of return earned on the funds relative to the required rate of return
(4) The required rate of return on the security based on its systematic risk
(5) The firm's dividend payout ratio
(6) The time horizon when these growth investments will be available
-Refer to Exhibit 14.1.In the listing above,which three factors influence the earnings multiple for a stock?


A) 1, 4, and 5
B) 1, 4, and 6
C) 2, 4, and 6
D) 2, 5, and 6
E) 4, 5, and 6

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