Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A)Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.
• B)Earnings per share is calculated for a company's preferred stock.
• C)The most widely quoted measure of a company's earnings performance is return on equity.
• D)The book value per share measures the market value of a corporation's stock.

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Definitions:

Fault Lines

Divisions or boundaries that emerge within groups or teams based on demographic, cultural, or organizational differences that can affect unity and performance.

Norms

Set of unwritten rules or expectations that dictate the behavior of individuals within a group, society, or culture.

Norms

Shared rules or standards that govern behaviors within a group or society.

Organizational Rules

Guidelines established by businesses or institutions to govern the behavior and actions of its members.