Estimating Earnings per Share (EPS) for Stock Market Series | CFA Level 1 Exam

Factors Not Involved in Estimating Earnings per Share (EPS) | CFA Level 1 Exam

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Question

Which of the following is not involved in the estimation of the earnings per share (EPS) for a stock market series?

Answers

Explanations

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A. B. C. D. E. F.

Explanation

While somewhat intuitively appealing, the estimation of next year's dividend payout ratio is not necessary when determining the anticipated EPS for a stock market series. The other five choices represent all the necessary steps in the estimation process.