Why do trailing p-e ratios vary with dividend payout

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Question: 1. It is also common to compare firms on their price-to-ebitda ratios. What are the merits of using this measure? What are the dangers? ebitda leaves something out.

2. Why do trailing P/E ratios vary with dividend payout?

3. It is sometimes said that firms prefer to make stock repurchases rather than pay dividends because stock repurchases yield a higher EPS. Do they?

Reference no: EM131486949

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