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Consider the following table of Earnings Components: Firm A Firm B Firm C Reported EPS $ 12 $ 15 $ 18 Analysts EPS composition: Permanent
Consider the following table of Earnings Components:
| Firm A | Firm B | Firm C | |||||||||
| Reported EPS | $ | 12 | $ | 15 | $ | 18 | |||||
| Analysts EPS composition: | |||||||||||
| Permanent component (P = 5) | 80 | % | 60 | % | 75 | % | |||||
| Transitory component (T = 1) | 10 | % | 35 | % | 25 | % | |||||
| Value-irrelevant component (0 = 0) | 10 | % | 5 | % | 0 | % | |||||
The implied total earnings multiple of Firm C is:
Multiple Choice
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1.00.
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15.00
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4.00.
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3.75.
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DCAA Contract Audit Manual Volume 1
Authors: Defense Contract Audit Agency
1st Edition
B08HTL19V5, 979-8684992995
