CHAPTER 8 QUIZ 41 TO 44 41. Since all companies must operate under generally accepted accounting principles, equal earnings per share for company A and B mean exactly the same thing to an investor. 42. Treasury stock represents shares of common stock that have been authorized but not issued. 43. DuPont analysis illustrates that the return on equity can be increased by decreasing the amount of debt used in the capital structure 44. DuPont analysis illustrates the interaction of financial leverage, profit margin, and asset turnover on generating return on equity
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