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Company A has a net income of $ 1 0 0 , 0 0 0 and 1 0 , 0 0 0 common shares in
Company A has a net income of $ and common shares in issue. Company B has a net income of $ and common shares in issue. All other things being equal,
a common share of A will have a higher market price than a common share of B
a common share of B will have a higher market price than a common share of A there is a higher earnings per share for the shares in company B the shares will have the same market price none of the above
Comparing the profit against either the assets employed or the sales revenue is
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