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Basic Question 0 of 11

The trailing P/E ratio will increase if the ______ increases.

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

User Contributed Comments 2

User Comment
ssradja be aware that II has affect on g too. g = ROE*b. So, it may or may not increase the P/E.
Phlipsen vey good comment ssradja!
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Edward Liu

Edward Liu

Learning Outcome Statements

describe tools and techniques used in financial analysis, including their uses and limitations

CFA® 2026 Level I Curriculum, Volume 3, Module 11.