Which statement is correct about earnings per share (EPS)?
A)EPS does not provide decision-useful information to investors.
B)EPS represents the ordinary share's market value.
C)EPS represents the company's market value.
D)EPS can be used to predict future earnings by analysts.

Question

Quizplus · Accepted Answer

EPS is a key financial indicator that is widely used by investors and analysts to evaluate a company's earnings performance. It is calculated by dividing the company's net income by the number of outstanding shares. EPS can be used to predict future earnings performance by analysts and is therefore considered a decision-useful information for investors. It does not represent the market value of the company or the ordinary share.

Which Statement Is Correct About Earnings Per Share (EPS)