Which of the Following Statements Is Correct

question 50

Multiple Choice

Which of the following statements is correct?

• 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.

---

Definitions:

Cross Elasticity

A measure of how the demand for one good responds to a change in the price of another good.

Dress Shirts

Garments with a collar, a full-length opening at the front from the collar to the hem, and sleeves with cuffs, typically worn for formal occasions or as part of office attire.

Complementary Goods

Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely).

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income.