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. The book value per share measures the market value of a corporation's stock.
C. Earnings per share is calculated for a company's preferred stock.
D. The most widely quoted measure of a company's earnings performance is return on equity.
Answer: A
You might also like to view...
PetSmart operates a large number of retail outlets and has begun opening a series of pet hotels
Indicate whether the statement is true or false
Name the components of the MECCAS model. What does MECCAS stand for?
What will be an ideal response?
Classify each of the following as either a one-time or recurring costs: training personnel initial programming and testing system design-one hardware costs software maintenance costs site preparation rent for facilities data conversion from old system to new system insurance costs installation of original equipment hardware upgrades
Which of the following is not true?
a. Most derivative acquisitions represent marketable securities held as current assets. b. The cash flow from operations section shows a subtraction for the increase in the current asset accounts in an amount equal to the firm's expenditure to acquire the derivative. c. If the firm classifies the derivative as a nonoperating asset, then the cash outflow appears in the investing section of the statement of cash flows. d. Subsequent to acquisition, the firm may report changes in the fair value of the derivative in income. e. Firms engage in transactions involving derivatives and for the most part, the complex parts of these transactions occur before the firm has acquired the derivative.