Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A)Typically, a firm's DPS should exceed its EPS.
• B)Typically, a firm's EBIT should exceed its EBITDA.
• C)If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share.
• D)If a firm is more profitable than most other firms, we would normally expect to see its book value per share exceed its stock price, especially after several years of high inflation.
• E)The more depreciation a firm has in a given year, the higher its EPS, other things held constant.

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Confusion

A state of being bewildered or unclear in one’s mind about something.

Lanham Act

A federal statute enacted in 1946 that governs trademarks, service marks, and unfair competition in the United States.

Federal Copyright Act

Legislation that protects the rights of creators over their original works, including reproduction, distribution, and adaptation rights.

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Having unique characteristics that set something or someone apart from others.