The statement that if you change the units of one of the variables, the value of correlation will increase or decrease" is; False
<h3>Correlation</h3>
It is pertinent to note that if we change the units in one of the variables the value increase, decrease, or stay the same
Now, the value of the correlation is simply the result of the interactions of all the units that exist in that variable and as a result changing only one of the variables does not always imply that there will be a change in the end result of the value.
In conclusion, the value of the correlation can also remain the same and so the statement is false.
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Answer: It is possible to make a valid conclusion as long as the data does not pertain to one certain region.
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Explanation:
A business strategy which will simplify the determination of whether convertible securities are dilutive or antidilutive to EPS is: Comparing the incremental effect of the conversion.
<h3>What is
EPS?</h3>
EPS is an acronym for earnings per share and it can be defined as the portion of a business firm's profit that is allocated per outstanding share of common stock of the business firm, so as to serve as a profitability indicator.
This ultimately implies that, a business strategy which will simplify the determination of whether convertible securities are dilutive or antidilutive to earnings per share (EPS) is comparing the incremental effect of this conversion.
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Complete Question:
Which of the following strategies will simplify the determination of whether convertible securities are dilutive or antidilutive to EPS?
Assume all convertible securities are dilutive.
Calculating EPS, including each possible combination of convertible securities.
Comparing the incremental effect of the conversion.
In light of this fact, it is best if the firm adjusts its hurdle rate (i.e., cost of capital) upward to compensate for this fact.
<h3>What is hurdle rate?</h3>
A hurdle rate is known to be the lowest rate of return that is needed on a project or any kind of investment.
Note that Some projects do take an undoubtedly result in zero and as such, In light of this fact, it is best if the firm adjusts its hurdle rate (i.e., cost of capital) upward to compensate for this fact.
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Answer: false
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