One Problem with Using EPS as a Measure of Profitability

question 63

Short Answer

One problem with using EPS as a measure of profitability is that it does not consider the amount of ____________________ or ____________________ required to generate a particular level of earnings.

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Definitions:

Elastic

The ability of an object or material to resume its normal shape after being stretched or compressed, a characteristic of materials like rubber.

Oxytocin

Hormone, released by the posterior pituitary, that causes contraction of the uterus and milk letdown.

Uterus

In mammals, expanded portion of the female reproductive tract through which eggs pass to the environment or in which an embryo develops and is nourished before birth.

Hormones

Chemical substances produced in the body that regulate the activity of cells or organs, essential for every activity of life, including the processes of digestion, metabolism, growth, reproduction, and mood control.