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Subject:
P/E Ratio
Category: Business and Money > Finance Asked by: coldsprings-ga List Price: $15.00 |
Posted:
20 Sep 2006 11:04 PDT
Expires: 26 Sep 2006 10:13 PDT Question ID: 767008 |
I've never used the Google "Ask a Question" before. I want to do some research on a company whose stock I'm interested in adding to my 401K, but I don't have the time due my work schedule and family. Base on each case below, indicate what will happen to the direction of the P/E ratio over the long term. Also, if the change could have a two directional effects on P/E, explain both. I'm NOT interested in the immediate arithmetic effect of having the numerator or denominator change. I want the long-term effeect on the P/E ratio. a. ROE increases b. Debt to equity ratio increases c. Profitability on the company's plant and equipment increases d. The economy's rate of growth increases but int rates in the economy are rising |
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