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ZZZ Corporation Has Declared a Share Dividend That Pays One

Question 17

Multiple Choice

ZZZ Corporation has declared a share dividend that pays one share for every 10 shares owned.What will happen to EPS immediately upon the distribution of the share dividend?


A) There is not enough information to know.
B) EPS will increase by 10%.
C) EPS will not be affected by the share dividend.
D) EPS will decrease by 10%.

Correct Answer:

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