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  3. company a has a net income of $100,000 and 10,000

Company A has a net income of $100,000 and 10,000 common shares in issue. Company...

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Accounting

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Company A has a net income of $100,000 and 10,000 common shares in issue. Company B has a net income of $2,000,000 and 200,000 common shares in issue. All other things being equal: the shares will have the same market price a common share of B will have a higher market price than a common share of A there is a higher earnings per share for the shares in company B a common share of A will have a higher market price than a common share of B

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