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For a Finance Manager the most important item to consider for improvement would be? a. Gross Profit b. Minimizing tax liability c. Maximum dividend payment d. Earning per share
option d: increasing earning per share
Increasing Earning per Share
CORRECT ANSWER IS D
Earning Per share...
d. Earning per share ;
Since:
a. Gross Profit is not contrllable cost b. Minimizing tax liability is not Finance managers jobc. Maximum dividend payment is out flow which is actullay depend upon comany policy and management decsiond. Earning per share means Net profit /number of shares, finance mangers job is to maximisa and optimised the profit per share wiht available finance.
Depending on the company nature,
but for the public sharing companies i will go for d. Earning per share
Option D: Earning per share.
fit answer is
d. Earning per share
the ultiimate goal for eny finance manager is to maximize share holder wealth and this is come by maximize earning by share earnig per share ratio said the (net income -prefere stock dividan)/average out standing share so gross profit is wrong because gross profite may be high but all profite piad in interest or in prefere stock dividan
EPS
