Indicate Whether Each of the Following Statements About Financial Statement

question 34

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
1. Both dividends and earnings performance are indicators of the value of a company's stock.
2. The most widely quoted measure of a company's earnings performance is return on equity.
3. Earnings per share is calculated for a company's common stock.
4. Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.
5. The book value per share measures the market value of a corporation's stock.

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Definitions:

Medical Insurance

Health care insurance for which premiums may be paid through a deduction from an employee’s paycheck.

State Income Tax

Taxes levied on income by individual states, varying widely in rate and structure from state to state.

Social Security

A government program that provides financial assistance to people with insufficient or no income, especially the elderly, disabled, and families with dependent children.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.