If Two Firms Have the Same Expected Earnings Per Share

question 64

True/False

If two firms have the same expected earnings per share (EPS)and the same standard deviation of expected EPS,then they must have the same amount of business risk.

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Definitions:

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that requires the government to provide fair compensation when it takes private property for public use.

Fifth Amendment

An amendment to the US Constitution that provides several rights related to legal proceedings, including the protection against self-incrimination and double jeopardy, and ensures due process of law.

Just Compensation

The fair market value payment required by law, given to property owners for the taking of their property by the government for public use.

Privacy Rights

The rights of individuals to control the use and disclosure of their personal information and to be free from unauthorized surveillance.