When a company issues additional shares of stock during the year,its earnings per share will most likely decrease.

Question

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When a company issues additional shares of stock, the total number of shares outstanding increases, which means that the earnings must be distributed among a greater number of shares. As a result, the earnings per share (EPS) are likely to decrease, since the company's total earnings will be divided among more shares.

When a Company Issues Additional Shares of Stock During the Year,its