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NEW QUESTION: 1
Firms A and B have simple capital structure with the same number of common stock outstanding. A finances its operations relying on debt financing while B prefers issuing preferred equity. If both the firms had the same net income last year, Firm A will have a:
A. higher EPS than B.
B. the same EPS as B.
C. lower EPS than B.
D. all of these answers can happen.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
For a simple capital structure, EPS = (Net Income - Preferred stock dividends)/weighted # of common shares Since both the firms have the same net income and common shares outstanding, Firm B will show a lower EPS due to the payment of preferred stock dividends.

NEW QUESTION: 2
The process used to disguise the trail of laundered funds within the financial system is known as:
A. Channeling
B. Reinvesting
C. Streamlining
D. Layering
Answer: C

NEW QUESTION: 3
In what order does the Management of Enterprise IT occur in the COBIT 5 Process Reference Model?
A. Monitor, Evaluate, Direct
B. Evaluate, Direct, Monitor
C. Build, Run, Plan, Monitor
D. Plan, Build, Run, Monitor
Answer: B