Earnings are used to analyse profit and are part of calculating a firm’s (share) value. （ ）
举一反三
- RE represents extra profit available to the company/shareholders this is what drives growth in a company’s (share) value. （ ）
- The price-earnings ratio is calculated by dividing: A: Market value per share by earnings per share. B: Earnings per share by market value per share. C: Dividends per share by earnings per share. D: Dividends per share by market value per share. E: Market value per share by dividends per share.
- Promotion can be used to increase the value and market share of a firm.
- To achieve profit is not the ultimate goal but profit is the bottom-line measure of a firm’s success and ability to survive.
- The target firm's underutilized borrowing capacity is often considered a source of value.