单选题
All else equal, an increase in a company"s growth rate will most likely cause its P/E ratio to:
A、
increase.
B、
not change.
C、
decrease.
【正确答案】
A
【答案解析】
Increase in g: As g increases, the spread between k
e
and g, or the P/E denominator, will decrease, and the P/E ratio will increase.
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