Indicate whether each of the following statements about financial statement analysis is true or false.Both dividends and earnings performance are indicators of the value of a company's stock.The most widely quoted measure of a company's earnings performance is return on equity.Earnings per share is calculated for a company's common stock.Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.The book value per share measures the market value of a corporation's stock.
What will be an ideal response?
Both dividends and earnings performance are indicators of the value of a company's stock. T
The most widely quoted measure of a company's earnings performance is return on equity. F
Earnings per share is calculated for a company's common stock. T
Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions. T
The book value per share measures the market value of a corporation's stock. F
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