Earnings Per Share Is an Indication of How Much

question 32

Multiple Choice

Earnings per share is an indication of how much

• A) the company paid as dividends for each share of stock.
• B) the company earned for each share of outstanding common and preferred stock.
• C) the company earned for each share of outstanding common stock.
• D) cash the company has for each share of all outstanding stock.

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Definitions:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Difference

The result of subtracting one quantity from another, often used to compare or measure changes.

Significant Correlation

A relationship between two variables where changes in one variable are associated with changes in the other, and this association is statistically significant.

Pearson Correlation

A measure of the linear correlation between two variables X and Y, giving a value between -1 and 1.