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Rural Feed Lots Ltd Is an All-Equity Firm with Positive

Question 47

Multiple Choice

Rural Feed Lots Ltd is an all-equity firm with positive net income.Which one of the following will result if the firm pays a cash dividend?


A) total equity will increase
B) total assets will remain constant
C) number of shares outstanding will increase
D) earnings per share will decrease
E) price-earnings ratio will decrease

Correct Answer:

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