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Which of the following ratios is not affected by the financial structure and the tax rate of a company?

A. Net profit margin

B. Earning power

C. Earnings per share

D. Capitalization rate

Answer: Option C

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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