Which of the Following Could Explain Why a Company Has

Multiple Choice

Which of the following could explain why a company has a lower net profit margin ratio but a higher EPS than one of its competitors?

A) The company sells a higher percentage of goods on credit.
B) The company has fewer shares of outstanding common stock relative to its net income.
C) The company earns a higher percentage of net income from non-operating activities.
D) The company pays a higher dividend.