Assuming all other factors remain unchanged, which of the following would most likely lead to a decrease in the market P/E ratio（）
A: A rise in the stock risk premium.
B: A decline in the risk-free rate.
C: An increase in the dividend payout ratio.
A: A rise in the stock risk premium.
B: A decline in the risk-free rate.
C: An increase in the dividend payout ratio.
举一反三
- If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion? A: The stock has a low level of risk. B: The stock offers a high dividend payout ratio. C: The market is undervaluing the stock. D: The market is overvaluing the stock.
- An analyst does research about factors affecting potential GDP. Which of the following will most likely increase potential GDP（） A: Increase the price level. B: Increase the human capital. C: Decrease money wage rate.
- A stock with a beta of zero would be expected to have a rate of return equal to A: the risk-free rate. B: the market rate. C: the prime rate. D: the average AAA bond.
- With respect to the security market line (SML), an increase in the business risk of the stock-is-suing company would most likely result in which of the following changes A: An upward shift in the SML B: A downward shift in the SML C: Movement upward along the SML
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk