If Two Firms Have the Same Expected Earnings Per Share

question 64

True/False

If two firms have the same expected earnings per share (EPS)and the same standard deviation of expected EPS,then they must have the same amount of business risk.

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Definitions:

Declaration of Independence

A foundational document adopted on July 4, 1776, by the Continental Congress, declaring the thirteen American colonies to be independent from British rule.

Sovereignty

The full right and power of a governing body to govern itself without any interference from outside sources or bodies.

Grievances

Complaints or protests, often against injustices or perceived wrongs, that can lead to demands for change or redress.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to measure the accuracy of a sample mean.