单选题 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.

【正确答案】 A

【答案解析】P/E=(1-RR)/(k-g) To lower P/E: RR increases, g decreases and or k increases. Both a decline in the RF rate and a decline in the rate of inflation will reduce k. An increase in the stock's risk premium will increase k.