Which of the following statements is true?
A) A graph of the relationship between EPS and EBIT is steeper when the firm is leveraged.
B) At the indifference point on an EPS-EBIT graph, two financing alternatives provide the same EBIT.
C) Firms are more likely to use greater levels of debt when predicted EBIT is low.
D) In EPS-EBIT analysis, EPS is considered a poor proxy for firm value.
E) None of the above.
A
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Procedures requiring that the recording of asset transactions be separated from the custody of those assets:
Select one: A. Are especially important in handling cash B. Make it easy for an employee to cover up the theft of an asset C. Are important only in very large businesses D. Will uncover collusion among employees
When a dam broke, the flow of water cut a strip of land from the river bank. This would be known as:
A: Accretion; B: Alluvion; C: Reversion; D: Avulsion.