The Credit Card Accountability and Disclosure Act (CARD)regulates Credit Card

question 44

Multiple Choice

The Credit Card Accountability and Disclosure Act (CARD) regulates credit card billing cycles by:

• A)allowing a $30 penalty fee for late payment of credit card debts.
• B)allowing penalties to exceed the minimum balance due.
• C)prohibiting double-cycle billing.
• D)issuing cards to applicants under 21 years without a cosigner.

---

Definitions:

EBIT

The measure known as Earnings Before Interest and Taxes determines a company's profit levels by excluding interest and tax-related expenses.

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.