Assume an all-equity firm has positive net income.If this firm pays a cash dividend the:
A)number of shares outstanding will increase.
B)earnings per share will decrease.
C)firm's total assets will remain constant.
D)price-earnings ratio will decrease.
E)firm's total equity will increase.

Question

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The Answer of Assume an all-equity firm has positive net income.If this firm pays a cash dividend the:
A)number of shares outstanding will increase.
B)earnings per share will decrease.
C)firm's total assets will remain constant.
D)price-earnings ratio will decrease.
E)firm's total equity will increase.

Assume an All-Equity Firm Has Positive Net Income