[amp_mcq option1=”earning per share” option2=”dividends per share” option3=”book value of share” option4=”market value of shares” correct=”option1″]
The correct answer is: A. earning per share
Earnings per share (EPS) is a measure of a company’s profitability. It is calculated by dividing a company’s net income by the number of shares outstanding.
Net income is a company’s total revenue minus its total expenses. The number of shares outstanding is the total number of shares that a company has issued.
EPS is a useful metric for investors because it allows them to compare the profitability of different companies. It is also used to calculate other important metrics, such as the price-to-earnings ratio (P/E ratio).
Dividends per share (DPS) is a measure of a company’s dividend payout ratio. It is calculated by dividing a company’s total dividends paid out in a given period by the number of shares outstanding.
Book value per share (BVPS) is a measure of a company’s net worth per share. It is calculated by dividing a company’s total equity by the number of shares outstanding.
Market value per share (MVPS) is a measure of a company’s stock price per share. It is calculated by dividing the total market capitalization of a company by the number of shares outstanding.