Regarding Earnings Per Share (EPS) Data

question 100

Multiple Choice

Regarding earnings per share (EPS) data

• A) both public and private corporations are required to report EPS on the face of the income statement.
• B) although public corporations are required to report EPS, private corporations are not.
• C) EPS related to comprehensive income is required.
• D) financial analysts do not attach much importance to EPS data.

---

Definitions:

Face Value

The nominal or stated value of a bond, share of stock, or other financial instruments, typically used as a reference for calculating interest, dividends, or premiums.

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over the bond's life, with the principal amount repaid at maturity.

Market Interest Rates

The prevailing rate of interest available in the marketplace for securities, loans, and deposits, determined by supply and demand dynamics.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the nominal value of a security.