QUESTION 8 Which of the following statements is false: 1. Shareholder value for a private company is the current market price of its common stock multiplied by the number of shares of common stock outstanding Shareholder value is the market value of the company. Earnings per share (EPS) is calculated by dividing the company's annual EBITDA by the number of shares of its common stock outstanding. A high growth rate encourages investors to buy the company's stock, anticipating that the stock will be worth more in the future. QUESTION 2 Which of the following statements is true: CoTwo areas that are often overlooked when expenses must be reduced are energy conservation andcapital improvements. Growth through management contracts is a strategy used primarily by restaurant companies. A. Owners typically take a company public to cash out of the investment. Equity markets are stock exchanges where the public can buy and sell shares of stock. QUESTION 1 1. Which of the following statements is false: Steady, sustained growth in the number of properties a company owns or manages provides clear career paths for its employees. To increase prots, a higher sales volume can be achieved by either raising the price of products or by selling more products. a. The more capital a company requires for growth, the quicker the growth rate. When a company's shares are diluted, that means earnings per share have been reduced