EPS Is Important to Common Shareholders for All of the Following

question 11

Multiple Choice

EPS is important to common shareholders for all of the following reasons, EXCEPT

• A) it indicates the amount of income that is earned by each common share.
• B) common shareholders have a residual interest in the company.
• C) it is an indicator of cumulative dividend payments.
• D) it is an indicator of the amount of income earned by each share.

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Definitions:

Longissimus Thoracis

A muscle in the back that helps extend, rotate, and laterally flex the spine.

Serratus Posterior Superior

A muscle situated in the upper back that helps in elevating the ribs during inhalation.

Elevate the Ribs

The action of increasing the thoracic cavity volume to aid in inhalation, primarily performed by the intercostal muscles.

Internal Intercostals

Muscles located between the ribs that help with breathing by reducing the space in the chest during exhalation.