In Its First Year of Operations, 1999, the Gourmet Cheese

question 24

Multiple Choice

In its first year of operations, 1999, the Gourmet Cheese Shoppe had earnings per share (EPS) of R0.26.Four years later, in 2003, EPS was up to R0.38, and 7 years after that, in 2010, EPS was up to R0.535.It appears that the first 4 years represented a supernormal growth situation and since then a more normal growth rate has been sustained.What are the rates of growth for the earlier period and for the later period?

• A) 6%; 5%
• B) 6%; 3%
• C) 10%; 8%
• D) 10%; 5%
• E) 12%; 7%

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Definitions:

Core Labor Standards

A set of principles related to workers' rights that are universally recognized and promoted, including prohibition of child labor, forced labor, discrimination, and the encouragement of collective bargaining.

Shareholder Value

A business approach focused on increasing the long-term value of a company for its shareholders, often measured by stock price appreciation and dividends.

American Corporation

A business entity incorporated in the United States, subject to U.S. corporate laws, and often characterized by its pursuit of profit and expansion.

Union Campaigns

Organized efforts by labor unions to promote specific goals such as improving working conditions or increasing membership.