question archive 1)If a firm has no operating leverage and no financial leverage, then a 10% increase in sales will have what effect on EPS? 2) As production levels increase, 3) The payment of dividends may indirectly result in closer monitoring of management's investment activities, thus increasing shareholder value by 4) A firm's optimal capital structure occurs where? 5) JBC Corp
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1)If a firm has no operating leverage and no financial leverage, then a 10% increase in sales will have what effect on EPS?
2) As production levels increase,
3) The payment of dividends may indirectly result in closer monitoring of management's investment activities, thus increasing shareholder value by
4) A firm's optimal capital structure occurs where?
5) JBC Corp. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet JBC Corp. stock declined by 3% the day of the announcement. RBG Corp. declared a dividend of $2 per share, which was the same as the prior year, and its stock increased in value by 2% on the day of the announcement. These events could be most readily explained by the
6) What is the economic difference between a stock dividend and a stock split?
7) When deciding upon how much debt financing to employ, most practitioners would cite which of the following as the most important influence on the level of the debt ratio?
8) Business risk refers to
9) The Modigliani and Miller hypothesis does not work in the "real world" because
10) Benkart's Tire Store has fixed costs of $220,000. Tires sell for $95 each and have a unit variable cost of $45. What is Benkart's break-even point in units?