Which of the Following Will Lead to an Increase in Earnings

question 45

Multiple Choice

Which of the following will lead to an increase in earnings per share?

• A) an increase in the P/E ratio
• B) an increase in the dividend payout ratio
• C) an increase in return on equity if book value per share stays the same
• D) a decrease in the number of shares if return on equity stays the same

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Definitions:

Objective Test

A form of assessment that measures an individual's knowledge or ability in a specific area through questions with preset correct answers, minimizing subjective judgment.

Empirical

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

Known Groups

Refer to specific, identified groups used in research studies to validate the measures or outcomes.

Binomial Effect Size Display

A statistical method to present the effect size of research findings in a more interpretable way by showing how a treatment influences outcomes in a hypothetical scenario of 100 cases.