Which of the Following Could Explain Why a Company Has

question 59

Multiple Choice

Which of the following could explain why a company has a lower net profit margin ratio but a higher EPS than one of its competitors?

• A)The company sells a higher percentage of goods on credit.
• B)The company has fewer shares of outstanding common stock relative to its net income.
• C)The company earns a higher percentage of net income from non-operating activities.
• D)The company pays a higher dividenD.Net profit margin = net income/sales

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Definitions:

Training

Teaching employees to do specific job tasks through either classroom development or on-the-job experience.