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C_THR81_2105

Exam Code: C_THR81_2105

Exam Name: SAP Certified Application Associate - SAP SuccessFactors Employee Central Core 1H/2021Certification

Version: V16.75

Q & A: 400 Questions and Answers

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NEW QUESTION: 1
In FusionSphere OpenStack, a host with a controller role is called a control node, and a host with a compute role is called a compute node.
A. TRUE
B. FALSE
Answer: B

NEW QUESTION: 2
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. None of these answers is correct.
B. The price/earnings ratio is less insulated from accounting distortions than is the EPS figure.; i.e. it is harder to "normalize."
C. The earnings multiplier is more sensitive to changes in the spread between the required return and growth.
D. 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."
E. The price/earnings ratio is more sensitive to increases in a companies dividends.
F. The EPS figure is subject to a deleveraging effect caused by changes in the capital structure.
Answer: C
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.

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