Solved

A Firm Has 1 Million Shares Outstanding and Produced Income

Question 3

Multiple Choice

A firm has 1 million shares outstanding and produced income of $1.8 million this year. The market price of the stock is $54.00. If the firm pays a 10% stock dividend at the same time as
The earnings announcement, what will the earnings per share be after this dividend is paid?


A) $5.40
B) $1.98
C) $1.64
D) $1.80

Correct Answer:

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