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

question 43

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)not change

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Definitions:

Unauthorized Act

An action taken without official permission or beyond granted authority, often leading to disciplinary actions or legal consequences.

Partners

The owners of a partnership.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, performed within the scope of their employment or agency.

Agency Law

A legal principle that governs the relationship between a principal and their agent, including the agent's authority to act on behalf of the principal and the principal's responsibility for the agent's actions.