Degree of operating leverage can be computed by
| A. | % change in Operating Income/% change in sales |
| B. | % Sales/% Profit |
| C. | Sales/Cost of Production |
| D. | Sales/Fixed Cost |
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Option: A Explanation : Click on Discuss to view users comments. |
Given
Ke = DPS/MP x 100, this formula may be used in
| A. | Calculating capital structure |
| B. | Reserve |
| C. | Depreciation |
| D. | Calculating Cost of Equity Share Capital |
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Option: D Explanation : Click on Discuss to view users comments. |
Which formula may be used for 'EPS'?
| A. | Net Profit/100 x Share Capital |
| B. | Dividend/Net Profit x 100 |
| C. | Net Income - Dividend on Preferred Stock/Average outstanding Shares |
| D. | Net Profit/Sales |
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Option: C Explanation : Click on Discuss to view users comments. |
Empirical evidence on acquisitions indicates - excess returns on average to the shareholders of the selling company, and _______ excess returns on average to those of the buying company.
| A. | no; no |
| B. | substantial; no |
| C. | no; substantial |
| D. | substantial; substantial |
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Option: B Explanation : Click on Discuss to view users comments. |
