问题
单项选择题
the expected dividend payout ratio of a firm is expected to rise from 50 percent to 55 percent, the cost of equity is expected to increase from 10 percent to 11 percent, and the firm’s growth rate remains at 5 percent, what will happen to the firm’s price-to-equity (P/E) ratio It will:（）
A. increase.
B. be negative.
C. decline.
答案
参考答案：C
解析：
Payout increases from 50% to 55% , cost of equity increases from 10% to 11% , and dividend growth rate stays at 5% , the P/E will change from 10 to 9.16:
P/E=Dividend Payout/(k-g).
P/E0=0.50/(0.10-0.05)=10.
P/E1=0.55/(0.11-0.50)=9.16.