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E11-17 Analyzing the Impact of Dividend Policy QL011-2, 11-4, 11-6, Q 11-9 Peters and Associates is a small manufacturer of electronic connections for local area
E11-17 Analyzing the Impact of Dividend Policy QL011-2, 11-4, 11-6, Q 11-9 Peters and Associates is a small manufacturer of electronic connections for local area networks. Consider the three cases below as independent situations. Case 1: Peters increases its cash dividend by 50 percent, but no other changes occur in the company's operations. Case 2: The company's income and operating cash flows increase by 50 percent, but this does not change its dividends. Case 3: Peters issues a 50 percent stock dividend, but no other changes occur. Page 602 Required: 1. How will each case affect Peters's statement of cash flows? 2. How will each case affect Peters's earnings per share ratio
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