647A. In estimating the value of common stock, the amount of EPS is considered an important element.

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6–47A. In estimating the value of common stock, the amount of EPS is considered an important element.

a. Explain why EPS is important in the valuation of common stock.

b. Is EPS equally important in valuing a preferred stock? Why or why not?

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Financial Statement Analysis

ISBN: 9780071263924

10th International Edition

Authors: John Wild

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