When Comparing a Company's Results from One Year to the Next

question 93

Multiple Choice

When comparing a company's results from one year to the next, what kind of information does a company's earnings per share figure provide?

• A) Whether the company generates more or less profit per sales dollar
• B) Whether the market price of a share of stock has gone up or down
• C) Whether the company's total net income has gone up or down
• D) Whether the amount of profit generated by one share of stock has gone up or down

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Definitions:

Retinal Disparity

Describes the binocular cue for depth perception based on the differences between the two retinal images when looking at an object, aiding in gauging distances.

Linear Perspective

A depth cue that results from the fact that parallel lines appear to converge as they recede into the distance.

Relative Luminance

A measure of the amount of light that is reflected from, or emitted by, a surface, normalized to a scale from 0 to 1, based on human visual sensitivity.

Size Constancy

Size constancy is a perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance or size of the image it projects on the retina.