A highly efficient company-and potential good investment-must have a high earnings per share ratio.

Question

Quizplus · Accepted Answer

While a high earnings per share may indicate a profitable company, it is not the only factor to consider when investing. Other factors such as the company's financial health, growth potential, industry trends, and market conditions must also be taken into account. A company may have a high earnings per share ratio but still have a high level of debt, low liquidity, or be operating in a declining industry, making it a risky investment.

A Highly Efficient Company-And Potential Good Investment-Must Have a High