Which Statement Is Correct

question 24

Multiple Choice

Which statement is correct?

• A)A complex capital structure includes potentially dilutive securities.
• B)A complex capital structure excludes potentially dilutive securities.
• C)EPS applies only to a company with a complex capital structure.
• D)A company with a complex capital structure calculates only basic EPS.

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Definitions:

Imperfectly Competitive

A market structure where individual firms have some control over the price of their products due to a lack of perfect competition.

Market Price

The current price at which a good or service is bought and sold in a marketplace, determined by supply and demand dynamics.

Unit Of Output

The measure of the quantity of a product or service produced by a firm, industry, or economic sector.

Competitive Industry

An industry in which no single firm has the power to influence the price of its product; there are many sellers and buyers, and products are largely homogeneous.