Vidyalelo
Commerce · Q842

Financial Management

Graduate and Post Graduate · Commerce · question 842

Q842

Growth in earnings per share is primarily resultant of growth in

A.
dividends
Answer
B.
asset value
C.
fundamental value
D.
yearly value

Answer: Option A

Solution

Answer: Option A
Solution:
Growth in earnings per share is primarily resultant of growth in dividends. Earnings per share growth is defined as the percentage change in normalised earnings per share over the previous 12 month period to the latest year end. It gives a good picture of the rate at which a company has grown its profitability.