Which Statement Is Correct About Earnings Per Share (EPS)

question 81

Multiple Choice

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

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

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Definitions:

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled.

Strategic Implementation

The process of executing plans and strategies to achieve long-term goals within an organization.

Defender Strategy

A business approach focusing on defending existing market positions and focusing on product or service quality and reliability to retain customers.

Existing Products

Items or goods that have been created and are currently available in the market.