1. earnings per share is equal to:

1. Earnings per share is equal to:

A. Net income divided by the total number of shares outstanding.

B. Net Income divided by the par value of commone stock.

C. Gross income multiplied by the par value of common stock.

D. Operating income divided by the par value of common stock.
2.Net capital spending:

A. is equal to ending net fixed assets minus beginning net fixed assets.

B. is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense.

C. reflects the net changes in total assets over a stated period of time.

D. is equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.

3.Fixed costs ________________.

A. change as a small quantity of output produced changes.

B. are constant over the short-run regardless of the quantity of output produced.

C. are defined as the change in total costs when one more unit of output is produced.

D. are subtracted from sales to compute the contribution margin.

E. can be ignored in scenario analysis since they are constant over the life of a project.

E. is equal to the net change in the current accounts.

4.Marginal costs ______________.

A. change as a function of the sales made in a given time period

B. (for a given time period) are constant no matter the quantity of output produced

C. change when there is a small change in output

D. comprise the sum total of all production expenses of the firm for some time period

5.Dividends per share is equal to:

A. Dividends paid divided by the par value of common stock.

B. Dividends paid divided by the total number os shares outstanding.

C. Dividends paid divided by the total stockholders’ equity.

D. Dividends paid multiplied by the par value of common shares.







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