If a Firm Has Current Earnings Per Share of $2

question 39

Multiple Choice

If a firm has current earnings per share of $2 and a degree of operating leverage of 4, a 10% increase in sales would result in earnings per share of:

• A) $2.80
• B) $8
• C) $2.20
• D) cannot tell from this information

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Definitions:

Social Objectives

These refer to the goals or aims that benefit society as a whole, often focusing on issues like welfare, education, and environmental protection.

Key Trait

A distinguishing characteristic or quality that contributes significantly to the behavior, abilities, or performance of an individual.

Effective Leadership

The ability to guide, direct, or influence people in a way that achieves organizational goals.

Trait Approach

A theory of leadership that proposes certain individuals possess inherent characteristics or traits that make them better suited to leadership roles.