Which of the Following Is Not True About EPS

question 42

Multiple Choice

Which of the following is not true about EPS?

• A)It must be reported by all corporations whose stock is publicly traded.
• B)It must be reported separately for discontinued operations.
• C)It must be reported on operating income.
• D)None of the other answers is correct.

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Definitions:

Internal Rate

Short for Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments by calculating the rate of return at which net present value of all cash flows (both positive and negative) from a project equals zero.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows from an investment to the investment's initial cost.

Mutually Exclusive

Situations or events that cannot both occur at the same time.

Net Present Value

A financial metric that calculates the present value of all cash flows, both incoming and outgoing, of an investment.