Why is EPS considered an important profitability ratio for investors?

• A. It reflects the company's total liabilities, which investors use to gauge risk.
• B. It indicates the amount of income earned per share, helping investors assess the profitability of their investment.
• C. It provides information on the company's cash flow, essential for investment planning.
• D. It shows the company's total assets, which is crucial for investment decisions.

Answer: (B)