Question
Of the following, select the incorrect statement concerning earnings per share. A) During periods when all income is paid out as dividends, earnings per share
Of the following, select the incorrect statement concerning earnings per share.
A) During periods when all income is paid out as dividends, earnings per share and dividends per share under a simple capital structure would be identical.
B)Under a simple capital structure, no adjustment to shares outstanding is necessary for a stock split on the last day of the fiscal period.
C) During a period, changes in stock issued or reacquired by a company may affect earnings per share.
D)During a loss period, the amount of loss attributed to each share of common stock should be computed.
Step by Step Solution
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Option B IS CORRECT Under a simple capital structure no adjus...Get Instant Access to Expert-Tailored Solutions
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