Royalware, Based in New England, Wanted to Establish a Foothold

question 80

True/False

Royalware, based in New England, wanted to establish a foothold in the Midwest, so it made an unsolicited bid to purchase TrueBlue, a similar firm based in Indiana.This is an example of a takeover.

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Definitions:

EPS

Earnings Per Share, a company's profit divided by the number of outstanding shares of its common stock.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by stockholder's equity.

Degree Of Total Leverage

A measure that quantifies the sensitivity of a company's earnings before interest and taxes to a change in its sales.

Financial Leverage

The use of borrowed capital or debt to increase the potential return of an investment.