Why must care be taken when comparing a firm's share price to its operating income?

Question content area bottom

Part 1

A.

Share price is a quantity related to equity holders, while operating income is an amount that is related to the whole firm.

B.

Both share price and operating income are related to the whole firm.

C.

Share price is a quantity related to the enterprise value of the firm, while operating income is related to the equity holders.

D.

Both share price and operating income are related solely to equity holders.

E.

Share price is a quantity related to the entire firm, while operating income is an amount that is related solely to equity holders.