If a Company Wants to Maximize Earnings Per Share It

question 108

Multiple Choice

If a company wants to maximize earnings per share it would issue:

• A) stock or bonds, depending on the tax rate.
• B) stock or bonds, depending on the interest rate.
• C) bonds.
• D) stock.

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Definitions:

Annual Salary

The total amount of monetary compensation a person earns from their employer in a year before taxes and other deductions.

Starting Bonus

A one-time payment made to an employee as an incentive at the beginning of their employment period.

Rate of Return

The percentage of profit or loss on an investment over a specified period.

Annuity

A financial instrument that provides a consistent series of payments to a person, mainly utilized as a source of income for those in retirement.