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Sagot :
If revenues, net profits, EPS, and ROE turn out to be worse than projected, it's because competition from rival firms in one or more geographic regions was stronger than anticipated by the company managers i.e., option (a).
Give a brief account on Earnings per share.
By dividing a company's revenue by the total number of outstanding shares of its common stock, one can calculate earnings per share (EPS). The resulting figure is used to assess the profitability of a business. EPS that has been modified for unusual items and probable share dilution is a standard practice for businesses. An organization's profitability is judged by how high its EPS is.
Net income, also known as profits or earnings, is divided by the total number of outstanding shares to arrive at the value of earnings per share. A more accurate computation alters the numerator and denominator for shares that could be produced through options, convertible debt, or warrants. The numerator is much more crucial if the equation is changed to take ongoing actions into account.
So, option (a) will be considered as the relevant option choice.
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