Leverage Can ________ a Firm's Expected Earnings Per Share, but Does

question 62

Multiple Choice

Leverage can ________ a firm's expected earnings per share, but does not necessarily increase the share price.

• A) decrease
• B) dilute
• C) increase
• D) never change

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Definitions:

Proximity

A principle of perception that elements close to each other tend to be perceived as a group.

Similarity

The state or fact of being alike; often used to describe how alike two or more objects, ideas, or concepts are.

Closure

The psychological term for seeking a sense of resolution or completion.

Binocular Disparity

The difference in the images received by the two eyes as a result of their horizontal separation, which is used for depth perception.