Factors will influence firm P-E ratio

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1. In an amortization schedule, when a loan with equal principal payments is being repaid annually over ten years, the ____.

a. amount of interest paid decreases each year

b. payment stays the same

c. amount of principal repaid increases each year

d. all of the above

2. Which of the following factors will influence a firm's P/E ratio?

A. The investors' required rate of return

B. Firm investment opportunities

C. General market conditions

D. All of the above

Reference no: EM131891546

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