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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Definitions:

Law and Order Stage

A stage in moral development where individuals value fixed rules, authority, and the maintenance of the social order.

Moral Development

The process by which individuals develop their understanding of right and wrong, influencing their behavior and attitudes toward ethical issues.

Ethical Behavior

Conduct that is in accordance with what is considered morally right or acceptable in a society, profession, or industry.

Business Ethics

Principles and standards that guide behavior in the world of business, addressing issues like corporate governance, insider trading, bribery, discrimination, and social responsibility.