Which of the following reasons best explains why earnings per share (EPS) is such a popular measure to evaluate a company?

Multiple Choice

• EPS makes it easy to compare one company with another.

• EPS is an excellent measure of how efficiently long-lived assets are being utilized.

• EPS provides information that investors can factor into their expectations about future dividends and stock prices.

• EPS provides specific information about the ability of a company to repay its long-term debts.