Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his position as manager of cost systems for Davis, Cohen, and…

Why or why not?(2) Could a potential agency problem exist in this firm? Explain.b. Calculate the firm’s earnings per share (EPS) for each year, recognizing that the number of shares of common stock outstanding has remained unchanged since the firm’s inception. Comment on the EPS performance in view of your response in part a.e. What recommendation would you make to Stanley regarding hiring a new software developer? Relate your recommendation here to your responses in part a.

a) 1) On what financial goal does Stanley seem to be focusing? Is it a correct goal? Why or why not?Answer:There increase in the profit generated by the company from 2011 till date. From the…

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