Because of the belief that accounting-based numbers such as ROI,ROE,and EPS are not reliable indicators of a corporation's economic value,which method of corporate performance is now preferred?
A) shareholder value
B) basic earning power
C) price/earnings ratio
D) profit margin on sales
E) return on assets

Question

Quizplus · Accepted Answer

Shareholder value measures the value created for shareholders in terms of stock price appreciation, dividends paid, and earnings growth. It focuses on creating long-term value for shareholders rather than short-term accounting-based metrics. This approach has gained popularity in recent years, particularly among investors who believe that traditional accounting-based metrics do not capture the true value of a company.

Because of the Belief That Accounting-Based Numbers Such as ROI,ROE,and