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Basic Question 0 of 10

The P/S ratio is positively related to ______.

I. dividend payout ratio
II. profit margin
III. required rate of return
IV. earnings growth rate

User Contributed Comments 3

User Comment
weiw it is not clear that the divident payout ratio is positively related to P/S ratio if you put it into the mathematical way. Remeber 1-b still affects g.
sahilb7 Shouldn't it be negatively correlated with r?
Omi1987 if r goes up then P/S comes down. It is negatively correlated.
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Learning Outcome Statements

explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve;

CFA® 2025 Level II Curriculum, Volume 4, Module 26.