问题
单项选择题
All else equal, which of the following would most likely cause a firm's price-earnings ratio to decline（）
A. The level of inflation is expected to decline.
B. The dividend payout ratio increases.
C. The yield on Treasury bills increases.
答案
参考答案：C
解析：
The risk free rate is a component of ke. ke can be represented by the following: nominal risk free rate + stock risk premium, where nominal risk free rate = [(1 + real risk free rate) × ( 1 + expected inflation rate) ]-1. If the nominal risk free rate increases, ke will increase. The spread between ke and g, or the P/E denominator, will increase. P/E ratio will decrease. P/E = payout ratio/(ke-g).