Typically, a firms DPS should exceed its EPS.


Asked by 2 years ago
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  1. Which of the following statements is CORRECT?

a. Typically, a firms DPS should exceed its EPS.

b. Typically, a firms EBIT should exceed its EBITDA.

c. If a firm is more profitable than average (e.g., Google), 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.

 

1 Answer

Answered by 2 years ago
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 Typically, a firms DPS should exceed its EPS.

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Excerpt from file: 1. Which of the following statements is CORRECT? a. Typically, a firms DPS should exceed its EPS. b. Typically, a firms EBIT should exceed its EBITDA. c. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share. d. If

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Asked: 2 years ago

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