Which of the Following Statements Is Correct

question 69

Multiple Choice

Which of the following statements is correct?

• A)Typically, a firm's DPS should exceed its EPS.
• B)Typically, a firm's EBIT should exceed its EBITDA.
• C)With an excellent profit record, a firm stock price exceeds its book value per share.
• D)The more depreciation a firm has in a given year, the higher its EPS, other things held constant.

---

Definitions:

Customers

Individuals or organizations that purchase goods or services from a business.

Average Amount

The arithmetic mean of a set of numbers, representing a central or typical value in a dataset.

Optimal Average Cash Balance

The ideal amount of cash that a company should hold to minimize costs associated with holding too much or too little cash.

Disbursements

Payments made by a business, usually consisting of expenses, investments, and other financial outlays.