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Question: if all earnings are paid as dividends and growth is...

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If all earnings are paid as dividends and growth is zero, then as Ks decreases, the P/E ratio:

A.

increases

B.

is not affected

C.

moves in a mysterious and undefinable manner

D.

decreases

If all earnings are paid as dividends and growth is zero, then as Ks increases, the P/E ratio:

A.

moves in a mysterious and undefinable manner

B.

is not affected

C.

decreases

D.

increases

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