1. Earnings per share (EPS) indicate the portion

| June 1, 2016

Question
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

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