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How Can Managers Manipulate EPS

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How can managers manipulate EPS?


Definitions:

Compounded Quarterly

Interest calculation method where interest is added to the principal sum so that each quarter's interest earns interest in subsequent quarters.

Obligation

A legal or moral duty to do something or pay an amount to someone.

Compounded Monthly

Interest calculation method where the interest is added to the principal at the end of each month, resulting in "interest on interest".

Interest

The cost of borrowing money, typically expressed as an annual percentage rate.

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