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

Question

Quizplus · Accepted Answer

When a company issues additional shares of stock during the year, the number of shares outstanding increases. This means that the company's earnings are now spread out over a larger number of shares, leading to a decrease in earnings per share. Therefore, the statement is false.

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