Since the number of shares changes under both a stock dividend and a stock split,any ratio based on the number of shares must be restated.

Question

Quizplus · Accepted Answer

This is true because both a stock dividend and a stock split involve a change in the number of shares, which means that any ratio based on the number of shares, such as earnings per share or price-to-earnings ratio, must be adjusted to reflect the new share count.

Since the Number of Shares Changes Under Both a Stock