Flashbulb Memories

question 63

Multiple Choice

Flashbulb memories:

• A) remain highly accurate over time.
• B) are relatively immune to inconsistencies.
• C) are held with very high confidence.
• D) are nearly perfect photographic records of the event.

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Definitions:

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.

EBIT

Earnings Before Interest and Taxes, a profitability measure for companies that doesn't include costs associated with taxes or interest.