Basic EPS Is

question 74

Multiple Choice

Basic EPS is

• A) a measurement of company growth.
• B) required on the financial statements under IFRS.
• C) used by creditors to make lending decisions.
• D) used to determine share price, the lower the EPS the higher the share price.

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Definitions:

Option Contract

A contract granting the option holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time period.

Legal Consideration

Something of value that is promised in exchange for performing an act or refraining from acting, forming a necessary element of a valid contract.

Open Offer

An invitation to all shareholders to purchase additional shares in the company, typically at a discount, and not limited to a specific number of shareholders.

Reasonable Intent

A legal standard assessing what a person of ordinary intelligence and prudence would intend under certain circumstances.