The US Federal Aviation Administration Reported That Passenger Revenues on International

question 58

Multiple Choice

The U.S. Federal Aviation Administration reported that passenger revenues on international flights increased from $528 million in 1986 to $5,100 million in 2009. What is the geometric mean annual percent increase in international passenger revenues?

• A)10.4
• B)27.9
• C)103.6
• D)9.96

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Definitions:

Leverage

The use of various financial instruments or borrowed capital, such as debt, to increase the potential return of an investment.

Stock Price

The cost of purchasing a single share of a company, which fluctuates based on market conditions and investor perceptions.

EBIT

Earnings Before Interest and Taxes represents a company's profit, encompassing all revenues and costs apart from interest and taxes.

EPS

Earnings per share. A firm’s earnings stated on a per-share outstanding basis. An important measure of business performance in the stock market.