Why should shareholders pay attention to the diluted EPS?
What will be an ideal response?
Answer: Diluted EPS tells the shareholders that there is a potential for the value of their shares to decline. They should base their investment decisions with the diluted EPS in mind. If the dilution does occur, the market value of their shares could decline.
Business
You might also like to view...
Monique contracts with Mrs. Jones to build a fireplace in Mrs. Jones’ home for $5,000. After completing the fireplace, Monique sends an invoice to Mrs. Jones. Which of the following is true?
A. Mrs. Jones is a secured creditor. B. Monique is an unsecured creditor. C. Mrs. Jones is in default. D. Mrs. Jones’ home is collateral.
Business
What are internal controls?
What will be an ideal response?
Business