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Basic Question 0 of 10
The P/S ratio is positively related to ______.
II. profit margin
III. required rate of return
IV. earnings growth rate
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
describe a framework for ethical decision making
CFA® 2025 Level I Curriculum, Volume 6, Module 1.