A Firm Is Expected to Generate $1

question 50

Multiple Choice

A firm is expected to generate $1.5 million in operating income and pay $250,000 in interest.Ignoring taxes,this will generate $12.50 earnings per share.What will happen to EPS if operating income increases to $2.0 million?

• A) EPS will increase to $15.63.
• B) EPS will increase to $16.67.
• C) EPS will increase to $17.50.
• D) EPS will increase to $20.00.

---

Definitions:

Unconscious Conflict

Psychological struggles within the unconscious mind, often stemming from repressed thoughts or feelings, that can influence behavior and emotions.

Id

In psychoanalytic theory, the part of the human personality that is driven by innate instinctual impulses and primary processes.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals and provides standards for judgment and future aspirations.

Humanistic Psychologists

Psychologists who focus on the individual's potential for personal growth and the importance of self-perception in understanding behavior.