Critics of EPS as a Measure of Profitability Point Out

question 64

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:

Efficient Manner

A way of achieving a goal using the least amount of time and resources while maintaining quality and effectiveness.

Urine Output

The amount of urine produced and eliminated by the body, an important indicator of kidney and overall health.

Evaluation Data

Information collected through various methods to assess the effectiveness of programs, interventions, or treatments in achieving predetermined objectives.

Expected Outcome

The anticipated result or effect that is aimed for following a specific intervention, treatment, or action.