Gearing Increases Earnings Per Share When the Return on Assets

question 28

Multiple Choice

Gearing increases earnings per share when the return on assets exceeds the:

• A)the after tax cost of debt.
• B)firm's return on shareholders' equity.
• C)dividends paid.
• D)return on sales.

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Definitions:

Closed-Loop Supply Chain

A supply chain model that integrates forward logistics with reverse logistics, focusing on recycling and reusing materials to minimize waste and improve sustainability.

Work in Process Inventory

Work in process inventory consists of goods and materials that have started the production process but are not yet completed at a specific point in time.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including material and labor costs.

Work in Process Inventory

The value of the goods that are partially completed by a company but not yet ready for sale.