Is this trend in earnings per share favorable or unfavorable

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Question: 1. Hash Mark, Inc., reports a return on assets of 8% and a return on equity of 12%. Why do the two rates differ?

2. Define earnings persistence. How does earnings persistence relate to the reporting of discontinued operations and extraordinary items?

3. Shifting Formations, Inc., reports earnings per share of $1.30. In the following year, it reports bottom-line earnings per share of $1.25 but earnings per share on income before extraordinary items of $1.50. Is this trend in earnings per share favorable or unfavorable? Explain why.

Reference no: EM131522383

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