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NEW QUESTION: 1



A)

B)

C)

D)

A. Option C
B. Option A
C. Option B
D. Option D
Answer: B

NEW QUESTION: 2
Quick Launch Rocket Company, a satellite launching firm, expects its sales to increase by 50 percent in the coming year as a result of NASA's recent problems with the space shuttle. The firm's current EPS is
$3.25. Its degree of operating leverage is 1.6, while its degree of financial leverage is 2.1. What is the firm's projected EPS for the coming year using the DTL approach?
A. $10.92
B. $19.63
C. $3.25
D. $5.46
E. $8.71
Answer: E
Explanation:
Explanation/Reference:
Explanation:
EPS(1) = EPS(0) + EPS(0) [DTL x (percent change in sales)]
= $3.25 [1 + (1.6)(2.1)(0.5)] = $3.25 [2.68]
EPS(1) = $8.71.

NEW QUESTION: 3
EZ, a manufacturer of electronic appliances, manufactures sandwich toasters, waffle makers, and sandwich-waffle makers. Recently, EZ reduced the price of sandwich-waffle makers by 20%. This increased the sales of sandwich-waffle makers by 20% and reduced the sale of sandwich toasters by 30% and waffle makers by 25%. Which of the following is true of this scenario?
A. Sandwich-waffle makers and sandwich toasters are likely to be substitute products.
B. The cross-price elasticity of sandwich-waffle makers and waffle makers is -2.
C. Sandwich-waffle makers and waffle makers are complementary products.
D. The price elasticity of sandwich-waffle makers is -2.
E. The cross-price elasticity of sandwich-waffle makers and sandwich toasters is -1.
Answer: A