A microeconomic estimate of the market earnings multiple requires an estimate for which of the following variables?
A) Dividend payout ratio
B) Return on equity
C) Real RFR
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

A microeconomic estimate of the market earnings multiple typically requires an estimate of the dividend payout ratio, return on equity, and the real risk-free rate (RFR), as these factors influence the valuation of earnings.

A Microeconomic Estimate of the Market Earnings Multiple Requires an Estimate