solution
solution.
Which of the following statements is CORRECT?
a. The more depreciation a firm has in a given year, the higher
its EPS, other things held constant.
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Order Paper Nowb. Typically, a firm’s DPS should exceed its EPS.
c. Typically, a firm’s EBIT should exceed its EBITDA.
d. 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.
e. 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.
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