In Order to Calculate the Intrinsic Value of the Stock

Multiple Choice

In order to calculate the intrinsic value of the stock analysts often use the normalized EPS for a company under typical operating conditions which:

A) does not make any adjustments to earnings since all earnings are normal.
B) adjusts earnings by deducting out the normal component and discounts the rest.
C) allows the analyst discretion to determine what is normal and what is not.
D) adjusts for unusual impacts on earnings such as non-recurring or extraordinary earnings..