Shareholders wealth increases with the increase in
Select one:
O a. EPS
O b. Market price of the equity share
O c. Market value of the firm
O d. Dividend & market value of the firm
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Answer:
O c. Market value of the firm.
Explanation:
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Shareholders' wealth increase with the increase in the EPS of the investors.
- EPS is the acronym for earning per share.
- It is the amount that is provided to the common shareholders after the payment of the expenses of the organisation and other financial obligations.
- The EPS can be calculated by dividing the net income by the number of common shares.
- The companies are expected to distribute the profit between the shareholders who invest in the company with the purpose of earning a return from investing in a stock.
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