Why do investors calculate different EPS levels? A. Some income items can be...
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Accounting
Why do investors calculate different EPS levels?
A Some income items can be used to predict future earnings, while others are unusual items that only affect the current years profits, so EPS should also represent those separate items.
B Tax professionals could see what different taxes would look like at different EPS levels.
C Preferred stock holders want to see what profits they could make if all profits were paid out.
D EPS helps show what would happen during a liquidation situation.
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