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Which of the following statements is correct regarding the importance of the EPS calculation to financial analysts who follow companies on the stock exchanges? a.

Which of the following statements is correct regarding the importance of the EPS calculation to financial analysts who follow companies on the stock exchanges?

a. EPS reflects the portion of a companys earnings that can be attributed to each outstanding common share.
b. An upward or downward trend in EPS has an inverse effect on a companys stock price.
c. EPS is another name for the price-to-earnings ratio, which is a key indicator of a stocks actual value.
d. Earnings per common share and earnings per preferred share are both important to analysts.

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