An Increase in the Market Price of a Company's Common

question 63

Multiple Choice

An increase in the market price of a company's common stock will immediately affect its:

• A)Stock return.
• B)Debt to equity ratio.
• C)Earnings per share.
• D)Economic value added.
• E)Return on equity.

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Definitions:

Certainty

The state of being completely confident or having an absolute conviction about something, without doubt.

Risk and Uncertainty

Refers to situations where the outcomes or consequences of actions are unknown, with risk implying some knowledge of probability and uncertainty indicating a complete lack of predictability.

Personal Judgments

Opinions or decisions formed by individuals based on personal feelings, tastes, or opinions, often without external input or influence.

Certainty

The state of being confident and free from doubt about something, often implying a high degree of belief in the accuracy or truth of an outcome or fact.