Scan QR code or get instant email to install app
Question:
The payment of a stock dividend will most likely decrease:
A
a firm’s earnings per share but not affect the value of its equity.
explanation
The payment of a stock (as opposed to a cash) dividend does not affect the firm’s total equity or net income, but will decrease its earnings per share because it increases the number of shares outstanding.
Take more free practice tests for other PASSEMALL topics with our cfa practice questions now!
Related Information
Comments