Give typing answer with explanation and conclusion The P/E ratio, or multiplier, is a measure of the relative price of a stock.All of the following are true except:If business risk increases for a firm, the P/E ratio will decrease, other things the same.Other things equal, as the required rate rises, the P/E ratio declines.O A higher expected payout ratio has a clear-cut positive impact on the P/E ratio.A high P/E ratio is justified for a firm if it has a high growth rate.The P/E ratio is conceptually a function of expected dividend payout ratio, required rate of return, expectedgrowth rate in dividends.

The P/E ratio, which stands for Price-to-Earnings ratio,, which stands for Price-to-Earnings ratio,…

The P/E ratio, or multiplier, is a measure of the relative price of a stock. All of the following are true except: If business risk increases for a firm, the P/E ratio will decrease, other things the same. Other things equal, as the required rate rises, the P/E ratio declines. A higher expected payout ratio has a clear-cut positive impact on the P/E ratio. A high P/E ratio is justified for a firm if it has a high growth rate. O The P/E ratio is conceptually a function of expected dividend payout ratio, required rate of return, expected growth rate in dividends.