Answer:
D. earnings growth will increase and the stock's P/E may or may not increase.
Explanation:
A firm increases its dividend plowback ratio. All else equal you know that earnings growth will increase and the stock's P/E may or may not increase.
A firm increases its dividend plowback ratio. All else equal you know that _____________.A. earnings growth will increase and the stock's P/E will increaseB. earnings growth will decrease and the stock's P/E will increaseC. earnings growth will increase and the stock's P/E will decreaseD. earnings growth will increase and the stock's P/E may or may not increase
