A Firm's Earnings Per Share Increased from $10 to $12

question 32

Multiple Choice

A firm's earnings per share increased from $10 to $12, its dividends increased from $4.00 to $4.40, and its share price increased from $80 to $100. Given this information, it follows that ________.

• A)the share experienced a drop in its P/E ratio
• B)the company had a decrease in its dividend payout ratio
• C)both earnings and share price increased by 20%
• D)the required rate of return increased

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Definitions:

Predicting Consumer Behavior

The process of using various analytical methods and data to forecast future purchasing patterns and preferences of consumers.

Demographics

Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education.

Demographic Segmentation

The division of a market into segments based on demographic factors like age, gender, income, education, or ethnicity to tailor marketing strategies.

"Mini-Ads"

Short, appealing advertisements aimed at capturing audience attention quickly, often used in digital or social media platforms.