If a Firm Has No Operating Leverage and No Financial

question 34

Multiple Choice

If a firm has no operating leverage and no financial leverage,then a 10% increase in sales will have what effect on EPS?

• A) EPS will remain the same.
• B) EPS will increase by 10%.
• C) EPS will decrease by 10%.
• D) EPS will increase by less than 10%.

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Definitions:

Collective Unconscious

A term coined by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience, shared among individuals of the same species.

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious, archetypes, and dream analysis.

Self-System

A conceptual framework regarding how an individual organizes their perceptions, attitudes, and values regarding themselves.

Freudian Psychology

Freudian Psychology is a theory of the human psyche developed by Sigmund Freud, which posits that unconscious desires and motives shape individual behavior and personality.