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Which of the Following Is NOT Considered in the Price-Earnings

Question 162

Multiple Choice

Which of the following is NOT considered in the price-earnings ratio technique?


A) firm's required rate of return on equity (k)
B) firm's dividend payout ratio (D/E)
C) firm's expected growth rate of dividends (g)
D) All of these are correct (that is, all are components of the P/E ratio) .
E) None of these are correct (that is, none are components of the P/E ratio) .

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