1. Earnings per share (EPS) indicate the portion of the company's profit that has been allocated to each share of common stock. EPS is a profitability ratio.
Respond to the following:
- In what ways can earnings per share (EPS) be used as a decision making tool?
Keep in mind: The ways in which EPS may be used as a decision making tool are accurately identified and explained.
APA citations required
2. A contingent liability is a potential liability whose realization depends upon the future outcome of an event.
Consider the features of contingent liabilities and respond to the following:
- Explain how contingent liabilities impact financial decisions. Give examples.
Keep in mind: The impact of contingent liabilities on financial decisions is accurately identified and explained with pertinent examples.
APA format citations required