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.
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