Some practicing financial analysts focus on earnings per share (EPS) as a major determinant of the firm`s

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Some practicing financial analysts focus on earnings per share (EPS) as a major determinant of the firm`s share price.

(a) Explain the link between EPS and the share price.

(b) What are the limitations of this approach to share valuation?

Related Book For answer-question

Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

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Posted Date: Aug 03, 2018 01:20 AM

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Some practicing financial analysts focus on earnings per share (EPS) as a major determinant of the firm`s

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a The earnings per share EPS provide information that how much ... View the full answer

Valuation Measuring and managing the values of companies

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