The Ratio of Net Profit to the Number of Shares

question 4

Multiple Choice

The ratio of net profit to the number of shares of common stock outstanding is called the:

• A)equity earnings
• B)earnings per share
• C)earnings for profit
• D)stock-to-earnings ratio
• E)profitability index

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Definitions:

Cycle Times

The period required to complete one cycle of an operation from start to finish, often used as a measure of efficiency in processes and production.

Time Value of Money

The idea that money in hand today holds greater value than an equivalent sum in the future because of its potential to generate earnings.

Post-Audit

The examination and review of a project's financial and operational outcomes after its completion, to assess its effectiveness and adherence to budget.

Post-Completion Audit

A review conducted after the completion of a project to evaluate its success, including its adherence to budget, timelines, and the achievement of expected benefits.