Analysts can compare ROCEs across companies but should not compare basic EPSs despite the fact that both

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Analysts can compare ROCEs across companies but should not compare basic EPSs despite the fact that both ratios use net income to the common shareholders in the numerator. Explain.

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Question Posted: Jun 23, 2012 08:42 AM

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Analysts can compare ROCEs across companies but should not compare basic EPSs despite the fact that both

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The statement is correct that both ROCE and basic earnings per share use net income available to the ...View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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