Quiz Ch 13 – Impact of Plowback Ratio on P/E Ratio
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What is the impact of increasing the plowback ratio on the P/E ratio?
What is the impact of increasing the plowback ratio on the P/E ratio?
What is indicated when a stock is accurately priced?
According to the constant-growth DDM and given the provided return requirement and dividend growth rates, will the intrinsic value of stock A be higher, equal to, or lower than stock B?
Based on a desired 11% return, dividends, and growth rates, according to the constant-growth DDM, will the intrinsic value of stock A be higher, equal to, or lower than stock B?
Based on the constant-growth DDM, dividend amounts, and different return demands for stocks A and B, will the intrinsic value of stock A be greater, equal to, or less than stock B?
What is the typical relationship between value stocks and their PEG ratio?
How does the PVGO as a percentage of share price typically change as a firm moves through the industry life cycle?
How do earnings yields typically respond to decreases in Treasury yields?
How do P/E ratios typically behave to inflation levels?
How does a firm’s higher ROA typically influence its dividend payout ratio and earnings growth rate?