Income statement reports on operations over period of time

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Reference no: EM132008894

1. If a firm’s earnings per share grew from $1 to $2 over a 10 year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain ( Hint: think about differences in interest earned over time. A simple example might also help)

2. Explain the following statement: While the balance sheet can be thought of as a snapshot of a firms financial position at a point in time, the income statement reports on operations over a period of time.

3. DuPONT AND NET INCOME Ebersoll Mining has $6 million in sales, it’s ROE is 12%, and its total assets turnover is 3.2. Common equity on the firms balance sheet is 50% of its total assets. What is it’s net income ?

Reference no: EM132008894

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