Question: Question 3 : According to the article, why do public companies have strong incentives to report higher earnings per share? Group of answer choices Investors

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3

According to the article, why do public companies have strong incentives to report higher earnings per share?

Group of answer choices

Investors often snap up shares of companies that beat EPS expectations and sell shares of companies that miss EPS expectations.

Investors often snap up shares of companies that miss EPS expectations and sell shares of companies that beat EPS expectations.

Company managers simply don't care about earnings per share.

The Securities and Exchange Commission prefers that companies report higher earnings per share and investigate companies that report low earnings per share.

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