单选题 A company has a "0" earnings retention rate, the firm"s P/E ratio will equal:
【正确答案】 A
【答案解析】P/E = dividend payout ratio/(k-g)
where g=( retention rate) (ROE) =(0)(ROE)=0
Dividend payout=1-retention ratio =1-0=1
P/E=1/(k-0)=1/k