单选题
编号:2692264
1. Robert Higgins is estimating the price-earnings (P/E) ratio that will be appropriate for an index at the end of next year. He has estimated that:
·Expected annual dividends will increase by 10% compared to this year.
·Expected earnings per share will increase by 10% compared to this year.
·The required rate of return will rise from 8% to 11%.
Compared to the current P/E, the end-of-the-year P/E will be:
- A.50% lower.
- B.2% higher.
- C.10% higher.