28.(TCO 5) When a stock split occurs, earnings per share must be adjusted(Points : 5)

proactively.

retroactively.

over the next 2 years.

Nothing needs to be adjusted.

Question 29.

29.(TCO 6) Which of the following ratios represents dividends per common share, in relation to market price per common share?(Points : 5)

Dividend payout

Dividend yield

Price/earnings

Book value per share

Question 30.

30.(TCO 6) Using financial leverage is a good financial strategy from the viewpoint of stockholders of companies having(Points : 5)

a high debt ratio.

cyclical highs and lows.

steady or rising profits.

a steadily declining current ratio.