According to MM, an Increase in Expected Earnings Per Share

question 96

Multiple Choice

According to MM, an increase in expected earnings per share can leave the share price unchanged if the:

• A) firm's operating risk decreases.
• B) number of shares is decreased.
• C) required return on equity increases.
• D)firm has no financial leverage.

---

Definitions:

Balancing

The process of ensuring stability or equilibrium in a system or situation.

Consumer Needs

Fundamental requirements that motivate individuals to make purchase decisions, such as food, shelter, and safety.

Paraphilia Behaviors

Patterns of sexual interest or activities that deviate significantly from the norm, often involving atypical objects, fantasies, behaviors, or individuals.

Ethnic Groups

Social groups that share a common national or cultural tradition.