In the analysis of profitability, if equity earnings are substantial, it is advisable to:
a. consider them as extraordinary.
b. consider them as nonrecurring.
c. investigate the earning power of the parent outside of the related investing activities.
d. recompute the debt ratio and times interest earned to remove the impact of equity earnings.
e. use the DuPont method to lessen the impact of equity earnings.
C
Business