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Which of the following ratios is not affected by the financial structure and the tax rate of a company?
Answer & Solution
Correct Answer:
Option
C
Earnings per share ratios is not affected by the financial structure and the tax rate of a company.
It is calculated by dividing the company's net income with its total number of outstanding shares. It is a tool that market participants use frequently to gauge the profitability of a company before buying its shares.
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