All categories

3 years ago

All of the following statements are true regarding earnings per common share (EPS) except:

Business

1 answer:

SVEN [57.7K]3 years ago

8 0

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares) is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

You might be interested in

Scenario: Home Monopolist) A monopolist faces a demand curve given by P = 60 2Q and has total costs given by TC = Q2. Its margin

enyata [817]

Answer:

Explanation:

Economy equilibrium is where MC = MR.

Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.

6 0

3 years ago

What is an advantage of using a competency-based pay plan? Employees tend to work harder. Salaries are easy to calculate. Employ

nalin [4]

Answer:

Competency-based pay helps to tie your company's culture directly to the success of the company. Increased transparency: Employees will better understand what they have the potential to earn with a competency-based pay system and what skills they need to acquire to reach the pay they desire.

6 0

3 years ago

According to marx, the best economic system would be one where the means of production and distribution are in the hands of the

ololo11 [35]

Karl Marx is the founder of modern communism. Bourgeousie defines the capitalists, those who own the means of production and who take advantage of the labor (work) of the proletariat (the mass of workers who do not own the means of production and are not fairly compensated for their work).
The statement that according to Marx, the best economic system would be one where the means of production and distribution are in the hands of the bourgeoisie is false. In contrast, according to Marx the best economic system would be one where the means of production and distribution are in the hands of the proleteriat.

3 0

3 years ago

Paano nakakatolong ang mga estruktura ng pamilihan sa pagpapaunlad ng ating bansa

kicyunya [14]

Answer:

<h3>PARA MAS LALO PANG GUMANDA ANG MGA STRAKTURA SA BANSA AT MARAMING MAIGANYUHAN ANG MGA TAO. NAKAKATULONG ITO SA MGA TAONG MAY TRBAHO NA MAY MGA HANAP BUHAY NA MAS LALO PANG LALAGO.</h3>

hopefully help:)

Explanation:

#CarryOnLearning

5 0

3 years ago

Kathleen is considering expanding her dress shop. If interest rates rise she is Group of answer choices less likely to expand. T

Karolina [17]

Answer:

Less likely to expand.

Explanation:

When ever interest rates rise in an economy, the soul purpose of that is to control inflation by influencing the people to save more and consume/spend less.

Hence, when the interest rates will rise, Kathleen will be moving away from the expansion process as she will have to borrow the money at more cost than before, hence increasing the risk of return from the expansion process. Hence this will lead to the demand for loan-able funds to slope downwards.

Hope this helps you. Good Luck.

7 0

3 years ago