Discuss some financial variables that affect the price-earnings ratio


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Discuss some financial variables that affect the price-earnings ratio


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1. Discuss some financial variables that affect the price-earnings ratio

2. Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders’ equity.

3. What issue does agency theory examine? Why is it important in a public corporation rather than in a private corporation?