A firm's earnings per share increased from $10 to $12. The firm's dividends increased from $4.00 to 4.80 per share and the share price increased from $80 to $90. Given this information, it follows that ________. Select one: A. The stock experienced a drop in the price-to-earnings ratio. B. The firm had a decrease in dividend payout ratio. C. The firm increased the number of shares outstanding. D. The required rate of return decreased
A firm's earnings per share increased from $10 to $12. The firm's dividends increased from $4.00 to 4.80 per share and the share price increased from $80 to $90. Given this information, it follows that ________. Select one: A. The stock experienced a drop in the price-to-earnings ratio. B. The firm had a decrease in dividend payout ratio. C. The firm increased the number of shares outstanding. D. The required rate of return decreased
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm's earnings per share increased from $10 to $12. The firm's dividends increased from $4.00 to 4.80 per share and the share price increased from $80 to $90. Given this information, it follows that ________.
Select one:
A. The stock experienced a drop in the price-to-earnings ratio.
B. The firm had a decrease in dividend payout ratio.
C. The firm increased the number of shares outstanding.
D. The required
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