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

Correct Answer: Earnings per share

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.
Bissoy MCQ
#Commerce #Financial Management

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