A Company Issued Additional Shares of Stock

question 148

Multiple Choice

A company issued additional shares of stock. Which of the following is true with regard to the effect of the stock issuance transaction on the company's ratio computations?

• A)Earnings per share decreased.
• B)The debt-to-equity ratio increased.
• C)The asset turnover ratio decreased.
• D)Return on equity remained unchanged.

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Definitions:

Divorce rates

The statistical measure of the number of divorces that occur in a particular population during a specific period.

Marital dissatisfaction

Feelings of unhappiness and discontent with one's marriage, which can stem from various factors including lack of communication, emotional disconnection, or unresolved conflicts.

Mother-stepfather family

A family structure consisting of a biological mother, her children, and a stepfather, formed after the mother enters a new marital or cohabiting relationship.

Complex stepfamily

A family structure that includes children from previous relationships of both partners, as well as any children they may have together.