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21. Which of the following is not a true statement regarding stock options? a. They may cause dilution of earnings per share
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21. Which of the following is not a true statement regarding stock options?
b. The exercise of stock options could result in either gains or losses.
22. The price/earnings ratio:
e. Indicates a firm's future growth.
23. Stable dividend policy would most commonly imply:
a. Stable dividends per share.
24. A firm has a degree of financial leverage of 1.3. If earnings before interest and tax increase by 10%, then net income:
c. Will increase by 13.0%
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