If a Firm Has No Debt and EBIT Increases by 10

question 24

Multiple Choice

If a firm has no debt and EBIT increases by 10%, then one can expect ____.

• A)EPS to increase by more than 10%
• B)ROE to increase by less than 10%
• C)net income to increase by 10%
• D)ROCE to be less than ROE

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Definitions:

Cross-Sectional Study

A study in which people (or animals) of different ages are compared at a given time.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time.

Gender Relationships

The social and cultural constructs that define the interactions, roles, behaviors, and expectations between genders within a society.

Inferential Statistics

Statistical procedures that allow researchers to draw inferences about how statistically meaningful a study’s results are.