Which of the Following Statements Is True of Earnings Per

Multiple Choice

Which of the following statements is true of earnings per share?

A) A company is liable to pay tax on the earnings per share of stockholders.
B) Earnings per share can be maximized by changing from corporation to sole proprietorship form of organization.
C) A company can maximize its value by maximizing earnings per share.
D) Earnings per share is used in measuring the firm's potential for generating future cash flows.
E) A high earnings per share in the current period results in lower future risk position of the business.