Refer to the Scenario Above

question 12

Multiple Choice

Refer to the scenario above.What would the unleveraged and leveraged EPSs look like if EBIT were only $1,200?

• A)All-equity EPS = $2.00,leveraged-equity EPS = $1.50
• B)All-equity EPS = $3.00,leveraged-equity EPS = $2.00
• C)All-equity EPS = $2.00,leveraged-equity EPS = $3.00
• D)All-equity EPS = $4.50,leveraged-equity EPS = $3.00

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Definitions:

Segmentation Variables

refer to the criteria or bases used in dividing a market into distinct subsets of consumers with common needs or characteristics, such as demographic, geographic, psychographic, and behavioral variables.

Purchase Frequency

The number of times a consumer buys a product or service within a given timeframe.

Market Segmentation

The practice of dividing a broad target market into subsets of consumers who have common needs and priorities, to design and implement strategies tailored to them.

Psychographically

An adverb relating to psychographics, the study of personality, values, opinions, attitudes, interests, and lifestyles of individuals or groups for marketing and other purposes.