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Factors affecting variability in earnings per share

Required:

Identify factors affecting variability in earnings per share, dividends per share, and market price per share that derive from
a. The company
b. The economy

Solution Preview

Required:

Identify factors affecting variability in earnings per share, dividends per share, and market price per share that derive from

a. The company

One has to see following factors:

1) Company management
The quality of the top management is the most important of all resources that a company has access to. An investor has to make a careful assessment of the competence of the company management as evidenced by the dynamism and vision. Finally, the results are the single most important barometer of the company's management. If the company's board includes certain directors who are well known for their efficiency, honesty and integrity and are associated with other companies of proven excellence, an investor can consider it as favorable.
2) History of the company
3) Product portfolio's strength
4) Market Share
5) Intrinsic Values like Patents and trademarks held
6) Future business plans and projects
7) Repeat customer purchase
(icicidirect.com)
8) Financial performance like profitability, liquidity and solvency

b. The ...

Solution Summary

This discusses the factors affecting variability in earnings per share, dividends per share

$2.19