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Which of the Following Statements Is CORRECT

Question 46

Multiple Choice

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.
B) 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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