202k views
1 vote
A firm increases its dividend plowback ratio. All else equal you know that _____________.A. earnings growth will increase and the stock's P/E will increaseB. earnings growth will decrease and the stock's P/E will increaseC. earnings growth will increase and the stock's P/E will decreaseD. earnings growth will increase and the stock's P/E may or may not increase

User Chapstick
by
7.9k points

2 Answers

6 votes

A firm increases its dividend plowback ratio. All else equal you know that _____________.A. earnings growth will increase and the stock's P/E will increaseB. earnings growth will decrease and the stock's P/E will increaseC. earnings growth will increase and the stock's P/E will decreaseD. earnings growth will increase and the stock's P/E may or may not increase

User Akaralar
by
8.0k points
1 vote

Answer:

D. earnings growth will increase and the stock's P/E may or may not increase.

Step-by-step explanation:

A firm increases its dividend plowback ratio. All else equal you know that earnings growth will increase and the stock's P/E may or may not increase.

User PierreBdR
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.