Which of the Following Is Correct for a Firm with EPS

question 75

Multiple Choice

Which of the following is correct for a firm with EPS of $2 per share and a 40 percent payout ratio?

• A)40 percent of earnings will be plowed back into the firm
• B)Dividends will equal 60' per share
• C)Book value per share of equity will increase by $1.20
• D)Retained earnings will be unchanged

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Definitions:

Calcaneus

The large bone forming the heel of the foot, which supports the weight and motion of the body.

Fibula

A long, slender bone located on the lateral side of the tibia in the lower leg.

Metatarsals

The five long bones in the foot that connect the ankle bones to those of the toes, playing a key role in mobility and weight distribution.

Tibia

The larger and stronger of the two bones in the lower leg, commonly referred to as the shin bone.