Heather is a stockholder of Eddie Bauer.From her perspective, the best indicator of Eddie Bauer's success is the _____.
A) return on inventory
B) acid-test ratio
C) debt-to-equity ratio
D) earnings per share
E) current ratio

Question

Quizplus · Accepted Answer

Earnings per share is a key indicator of a company's financial performance because it measures the amount of profit earned for each share of stock outstanding. As a stockholder, Heather would be interested in the company's earnings per share as it directly affects the value of her investment.

Heather Is a Stockholder of Eddie Bauer