Which of the Following Is Correct for a Firm with EPS

question 1

Multiple Choice

Which of the following is correct for a firm with EPS of $2.00 per share and a 45% payout ratio?

• A) 45% of earnings will be plowed back into the firm.
• B) Dividends will equal $1.10 per share.
• C) Book value per share of equity will increase by $1.10.
• D) Retained earnings will be unchanged.

Distinguish between realistic and unrealistic optimism in self-perception.

Understand the concept of self-esteem and its variations among individuals.

Explain the role of self-evaluation and why individuals seek self-knowledge.

Identify behaviors indicative of self-protection and self-handicapping strategies.

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Definitions:

Kinesthetically Intelligent

The capacity to use one's body effectively to perform physical tasks, often associated with high bodily-kinesthetic intelligence.

Payoff

The benefit, reward, or return received as a result of an investment or action.

Logical Intelligence

The capability to efficiently solve mathematical and logical problems, and to analyze arguments and scenarios critically.

Spatial Intelligence

The ability to think in three dimensions, comprehend spatial relationships, and visualize movements or changes in physical spaces.