单选题 According to the earnings multiplier model, all else equal, as the required rate of return on a stock increases, the:

A、 P/E ratio will increase.
B、 P/E ratio will decrease.
C、 earnings per share will decrease.

【正确答案】 B

【答案解析】According to the earnings multiplier model, the P/E ratio is equal to P ₀ /E ₁ =(D ₁ /E ₁ )/(k _e -g). As k _e increases, P ₀ /E ₁ will decrease, all else equal.