Which statement is correct about earnings per share (EPS)?
A)A company's total earnings is more meaningful than its EPS.
B)EPS represents the total amount of earnings of a company.
C)EPS measures an ordinary share's interest in a company's earnings.
D)The EPS is directly correlated with the company's stock price.

Question

Quizplus · Accepted Answer

EPS measures an ordinary share's interest in a company's earnings, indicating how much money shareholders would receive for each share they own if all the profits were distributed to them.

Which Statement Is Correct About Earnings Per Share (EPS)