The correct answer is: D. P/E ratio and required return.
The P/E ratio is a measure of the price-to-earnings ratio of a stock. It is calculated by dividing the stock price by the earnings per share (EPS). The required return is the minimum return that an investor expects to earn on an investment.
The P/E model is a valuation model that uses the P/E ratio to estimate the value of a stock. The model assumes that the stock price is equal to the product of the P/E ratio and the required return.
Option A is incorrect because EPS is the earnings per share of a stock, not the price of the stock.
Option B is incorrect because the P/E ratio and EPS are both inputs to the P/E model, not the output of the model.
Option C is incorrect because the required return is the minimum return that an investor expects to earn on an investment, not the price of the stock.