Critics of EPS as a Measure of Profitability Point Out

question 81

Multiple Choice

Critics of EPS as a measure of profitability point out that it does not consider:

• A) simple capital structures.
• B) the amount of assets or capital required to generate a particular level of earnings.
• C) the deduction of preferred stock dividends from net income.
• D) Adjustments for dilutive securities and the adjustment to weighted average number of
• Shares outstanding for complex capital structures.

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Definitions:

Positive Predictive Value

The probability that subjects with a positive screening test truly have the disease.

Prevalence

The total number of cases of a disease that exist in a particular population at a specific time.

False-Positive Diagnosis

An erroneous identification where a test incorrectly indicates the presence of a condition that is actually absent.

Diagnostic Procedures

Medical tests and evaluations performed to identify the presence of a disease or determine its severity in a patient.