Measures That Provide Managers with Information They Need to Take

question 69

Multiple Choice

Measures that provide managers with information they need to take timely, corrective action are referred to as

• A)budget indicators.
• B)variance indicators.
• C)cycle indicators.
• D)leading indicators.

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Definitions:

Expected EPS

Estimated Earnings Per Share, forecasting a company's profitability on a per share basis.

Share Price

The price of a single share of a company's stock.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Optimal Capital Structure

The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value and stock price.