CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Under the P/E method derived from the DDM, which of the following does not impact the P/E ratio?

I. The expected divided payout ratio
II. The required rate of return
III. The expected growth rate of dividends
A. I and III
B. II only
C. None of these
Explanation: All of them impact the P/E ratio: P/E1 = (D1/E1)/(k - g).

User Contributed Comments 4

User Comment
Peter All of them impact P/E ratio so why does it make C correct?
julamo The question goes "which of the following does NOT impact the P/E ratio?" As you said, they all impact the P/E ratio so "None of these" is the obvious answer.
dan1987 double negative question, nearly caught me
khalifa92 its more like an awareness exam than it is a cfa exam
You need to log in first to add your comment.