The effect of financial leverage is such that an increase in a firm's earnings before interest and taxes (EBIT) results in a more than proportional increase in the firm's earnings per share (EPS), while a decrease in the firm's EBIT results in a less
than proportional decrease in EPS.
Indicate whether the statement is true or false
FALSE
Business
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What is the main disadvantage of having a longer run for the test market?
A) It costs more and gives competitors time to formulate a counterattack. B) It is difficult to gather information about customer attitudes as their responses to surveys may not be honest. C) Customers might lose interest in the product. D) The sales data gathered will not be useful for predicting actual sales.
Business
What is a communication network? What is its significance in the organizational scheme of things?
What will be an ideal response?
Business