Why are earnings per share so important for investors and other external stakeholders?
Can earnings per share increase while net income declines at the same time? How can this happen?
There are two major markets for the sale of stock: the primary market and the secondary market. True or false?
True or False. An EPS of $1.12 indicates a company made a $1.12 of profits on every dollar of total equity.
A company reports the following: Net income $150,000; Preferred dividends $10,000, Shares of common stock outstanding $20,000, Market price per share of common stock $35.00. Determine the company’s earnings per share on common stock.
Determine whether the following statement is true or false: In the absence of preferred stock, income equals earnings available to the common stockholder (for purposes of calculating earnings per share).
