Which of the following is NOT a major variable that affects the aggregate stock market earnings multiplier in a country?
A) required rate of return on common stock in the country
B) expected growth rate of dividends for the stocks in the country
C) composite dividend-payout ratio for common stocks in country
D) composite debt to equity ratio for firms in the country
E) All of these are correct (that is, all are major variables for a country's aggregate stock market earnings multiplier).

Question

Quizplus · Accepted Answer

The composite debt to equity ratio for firms in the country is not a major variable that affects the aggregate stock market earnings multiplier in a country. The other options (A, B, and C) are all major variables that affect the earnings multiplier.

Which of the Following Is NOT a Major Variable That