Which Statement Is Correct About Earnings Per Share (EPS)

question 31

Multiple Choice

Which statement is correct about earnings per share (EPS) ?

• A)EPS does not provide decision-useful information to investors.
• B)EPS represents the ordinary share's market value.
• C)EPS represents the company's market value.
• D)EPS can be used to predict future earnings by analysts.

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Definitions:

Salivation

The secretion of saliva in the mouth, which is often triggered by the presence or anticipation of food.

Behaviorism

A school of psychology that focuses on observable behaviors and the ways in which they're learned, rather than on feelings or thoughts.

Psychology

The science of behavior and mental processes.

Objective Science

Objective science pertains to the study of the natural world based on observable, measurable evidence, free from personal biases or emotions.