Question

Profit maximization as a goal is ideal because it directly considers​ ________.

a. risk and book value of assets
b. eps and stock price.
c. timing and cash flow
d. timing and risk

Answer 1

The answer is option "b. eps and stock price.".

Stock price changes are famously hard to foresee, yet the earning per-share figure is a decent beginning stage for measuring an organization's prospects.The P/E proportion measures the connection between an organization's stock price and EPS (which stands for earnings per share) of stock issued. The P/E proportion is ascertained by separating an organization's present stock cost by its earning per share (EPS).