Multiple Choice
Which of the following statements is true of earnings per share?
A) A company must pay tax on the earnings per share.
B) Earnings per share can be maximized by changing from corporation to proprietorship form of organization.
C) A company can maximize its value by maximizing earnings per share.
D) Earnings per share is often used as an indication of 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.
Correct Answer:
Verified
Correct Answer:
Verified
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