A Direct Application of the Earnings-Per-Share Ratio to Venture Earnings

question 17

True/False

A direct application of the earnings-per-share ratio to venture earnings is known as the direct comparison valuation method.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs.

Variable Costs

Variable costs are expenses that change in proportion to the activity or production level of a business.

Fixed Costs

Expenses that do not fluctuate with the level of goods or services produced by the business.

Net Income

The total earnings of a person or organization after subtracting all expenses and taxes.