What is the effect of a share split on earnings per share and the number of shares outstanding,respectively?
A) increase; decrease
B) decrease; increase
C) increase; increase
D) no effect; increase

Question

Quizplus · Accepted Answer

A share split increases the number of shares outstanding while decreasing the earnings per share, as the total earnings are now spread over a larger number of shares.

What Is the Effect of a Share Split on Earnings