Managers monitor earnings per share (EPS) because

Select one:

A. retained earnings must be available for the payment of EPS.

B. EPS is affected by dividends paid.

C. investors use EPS as a basis in evaluating the firm's profitability.

D. EPS should be used as a single broad measure of overall firm performance. .

Mamantor Company had a debt to equity ratio of 0.600. The company received a loan. The effect of the transaction is

Select one:

A. the ratio decreased.

B. there is insufficient information to predict the effect.

C. the ratio remained the same.

D. the ratio increased.