If a Firm Has Current Earnings Per Share of $2

question 148

Multiple Choice

If a firm has current earnings per share of $2 and a degree of combined leverage of 4, a 10% increase in sales would result in earnings per share of:

• A)$2.80
• B)$8
• C)$2.20
• D)cannot tell from this information

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Definitions:

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Verbal Tool

Language used as a means to communicate, express ideas, or convey messages effectively.

Lev Vygotsky

A Russian psychologist known for his work on cognitive development, emphasizing the role of social interaction and cultural tools in learning.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events.