单选题 All else equal, a firm will have a higher Price-to-Earnings (P/E) multiple if:
A. retention ratio is higher. B. risk-free rate is higher. C. the stock's beta is lower

【正确答案】 C

【答案解析】To increase P/E ratio, lower the retention ratio, lower k or increase g. A lower beta would lead to a lower stock risk premium and a lower k.