Timeline for Why is diluting eps wrong?
Current License: CC BY-SA 3.0
3 events
| when toggle format | what | by | license | comment | |
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| Jan 30, 2018 at 19:23 | comment | added | nbbo2 | Accounting professor Stephen Penman calls this bias "functional fixedness" with respect to earnings. books.google.com/… | |
| Jan 30, 2018 at 9:27 | comment | added | nbbo2 | Many people have a mental model where the price of the stock is equal to K times EPS, where K is some kind of constant for a given type of firm. Obviously this is a rather simplistic model of stock valuation that leads to many fallacies and Finance courses explain why this is so (at least I hope they do). But an operating manager who does not handle finance probably does not take such a course. | |
| Jan 30, 2018 at 8:55 | history | asked | user27257 | CC BY-SA 3.0 |