Which of the Following Statements Is CORRECT

question 21

Multiple Choice

Which of the following statements is CORRECT?

• A) Typically,a firm's DPS should exceed its EPS.
• B) Typically,a firm's net income should exceed its EBIT.
• C) If a firm is more profitable than average,we would normally expect to see its stock price exceed its book value per share.
• D) If a firm is more profitable than most other firms,we would normally expect to see its book value per share exceed its stock price,especially after several years of high inflation.
• E) The more depreciation a firm has in a given year,the higher its EPS,other things held constant.

---

Definitions:

Metapopulation

A population that is divided into several local populations among which individuals occasionally disperse.

Disperse

The action or process by which something spreads or is spread over a wide area.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on.

Mortality

The state of being subject to death; often used to describe the rate at which death occurs in a population or the number of deaths in a specific period.