1. The earnings per share figure
a. is only one measure of a firm’s profitability
b. is the best measure of a firm's profitability
c. can only be computed if a firm has no debt
d. is a comparative ratio
2. An investment project requires a net investment of $90,000. The project is expected to generate annual net cash inflows of $22,000 for the next 5 years. The firm's cost of capital is 12 percent. Determine the simple payback period for the project.
0.28 years
1.4 years
4.09 years
17.86 years