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NEW QUESTION: 1
Which of the following best describes the primary reason for the greater volatility of the earnings multiplier of a stock market series compared to the earnings per share (EPS) for the same series? Choose the best answer.
A. The earnings multiplier is more sensitive to changes in the spread between the required return and growth.
B. None of these answers is correct.
C. The price/earnings ratio is more sensitive to increases in a companies dividends.
D. The price/earnings ratio is less insulated from accounting distortions than is the EPS figure.; i.e. it is harder to "normalize."
E. The EPS figure is subject to a deleveraging effect caused by changes in the capital structure.
F. The earnings multiplier is more sensitive to fluctuations in the equity markets than is the EPS figure; i.e.
the earnings multiplier is "forward looking."
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The greater relative volatility of the earnings multiplier versus the EPS figure is primarily attributable to an increased sensitivity to changes in the spread between the required rate of return "k" and the anticipated growth rate "g." Remember that the equation used to determine the appropriate earnings multiplier for a stock market series is the following:
P/E = [D/E / (k - g)]
Where: P/E = the earnings multiplier, or Price-to-Earnings ratio, D/E = the dividend payout ratio at t1, k = the required rate of return, and g = the anticipated growth rate of dividends.
As you can see, changes in the spread between the required rate of return and the anticipated growth rate can have a dramatic effect on the earnings multiplier figure for a stock market series. While the earnings multiplier is sensitive to changes in the dividend payout ratio, volatility in this figure is not cause for the increased volatility of the earnings multiplier versus the EPS figure.
NEW QUESTION: 2
You have a web app named MainApp. You are developing a triggered App Service background task by using the WebJobs SDK.
This task automatically invokes a function in the code whenever any new data is received in a queue.
You need to configure the services.
Which service should you use for each scenario? To answer, drag the appropriate services to the correct scenarios. Each service may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
References:
https://docs.microsoft.com/en-us/azure/azure-functions/functions-compare-logic-apps-ms-flow-webjobs
NEW QUESTION: 3
DRAG DROP
Answer:
Explanation:
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