Which of the Following Reasons Best Explains Why Earnings Per

question 93

Multiple Choice

Which of the following reasons best explains why earnings per share (EPS) is such a popular measure to evaluate a company?

• A)EPS is an excellent measure of how efficiently long-lived assets are being utilized.
• B)EPS provides specific information about the ability of a company to repay its long-term debts.
• C)EPS makes it easy to compare one company with another.
• D)EPS provides information that investors can factor into their expectations about future dividends and stock prices.

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