Question 4-6

QUESTION 4 A company's profitability is important to shareholders for all of the following reasons EXCEPT O a shareholders often use profitability to evaluate a company's solvency. O b. shareholders often compare quarterly and annual earnings per share (EPS) with analysts EPS forecasts. O shareholders often include expected EPS in valuation models O d. shareholders often use current EPS and trends in EPS as an indicator of future profitability QUESTIONS Ratios are an input into which step in the financial statement analysis framework? a. Process data Ob.Collect input data OC. Analyze / interpret the processed data. O d.develop and communicate conclusions and recommendations QUESTION 6 From a finance perspective, which of the following variables determine a company's price-to-earnings ratio? O a. Stock price and earnings per share (EPS) O b. Stock price and the expected growth rate in EPS O c Stock price and company risk Od. The expected growth rate in EPS and company risk