Discuss earnings per share and how they are used
What will be an ideal response?
Answer: Defined as net income divided by the number of shares of common stock outstanding, earnings per share determines the size of the dividend that a firm can pay shareholders. As an indicator of a company's wealth potential, investors use this ratio to decide whether to buy or sell the firm's stock. As the ratio goes up, stock value increases because investors know that the firm can better afford to pay dividends. Naturally, stock loses market value if financial statements report a decline in earnings per share.
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Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included?
a. Existence. b. Valuation. c. Completeness. d. Rights and Obligations
The Galatea effect is based on a person’s sense of ______.
A. self-esteem B. self-efficacy C. self-fulfilling prophecy D. grit
Individuals from London or the United States are likely to touch people they are talking with more frequently than individuals from Paris or Puerto Rico do
Indicate whether the statement is true or false
Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for November is 7,000 hours, then the total budgeted cash disbursements for manufacturing overhead for November must be:
A. $97,900 B. $41,900 C. $86,000 D. $127,900