Assuming all other factors remain unchanged, __________ would increase a firm's price-earnings ratio.

Assuming all other factors remain unchanged, __________ would increase a firm's price-earnings ratio.

Assuming all other factors remain unchanged, __________ would increase a firm's price-earnings ratio.


A. an increase in the dividend payout ratio

B. a reduction in investor risk aversion

C. an expected increase in the level of inflation

D. an increase in the yield on Treasury bills






Answer: B