问题
单项选择题
Assume that the expected dividend growth rate (g) for a firm decreased from 5% to zero. Further, assume that the firm's cost of equity (k) and dividend payout ratio will maintain their historic levels. The firm's P/E ratio will most likely:（）
A. become undefined.
B. increase.
C. decrease.
答案
参考答案：C
解析：
The P/E ratio may be defined as: Payout ratio/(k-g), so if k is constant and g goes to zero, the P/E will decrease.