Which Statement Is Correct About Earnings Per Share (EPS)

question 43

Multiple Choice

Which statement is correct about earnings per share (EPS) ?

• A)A company's total earning is more meaningful than its EPS.
• B)EPS represents the total amount of earnings of a company.
• C)EPS represents an ordinary share's interest in the company.
• D)The EPS is directly correlated with the company's stock price.

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Definitions:

Incentive

A factor, often a reward or penalty, that motivates an individual or entity to act in a certain way.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to sell at various price levels.

Human Resource

A department within organizations focused on employee recruitment, management, and providing direction for the people who work in the institution.

Physical Resources

Physical resources refer to tangible assets and materials used in the production of goods and services, such as machinery, buildings, and raw materials.