Which of the Following Will Lead to an Increase in Earnings

question 45

Multiple Choice

Which of the following will lead to an increase in earnings per share?

• A) an increase in the P/E ratio
• B) an increase in the dividend payout ratio
• C) an increase in return on equity if book value per share stays the same
• D) a decrease in the number of shares if return on equity stays the same

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Definitions:

Situation Analysis

An assessment process that identifies an organization's internal strengths and weaknesses, along with external opportunities and threats in its environment.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Market Summary

A description of the current state of the market.

BCG Matrix

A strategic business tool that classifies business units or products into four categories (Question Marks, Stars, Cash Cows, Dogs) based on market growth and market share.