When a Midyear Stock Dividend Increases the Number of Common

question 99

True/False

When a midyear stock dividend increases the number of common shares outstanding for the period, the new shares resulting from the dividend are weighted by one-half a year for purposes of computing EPS.

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Definitions:

Reaffirmation Agreement

An agreement in which the debtor agrees to pay a debt even though it could have been discharged in bankruptcy.

Discharged Debt

Debt that has been formally released or forgiven, relieving the debtor of any further responsibility to repay it.

Trustee

An individual or company responsible for managing and overseeing assets or property on behalf of another party.

Chapter 7 Bankruptcy

A provision of the bankruptcy code that allows individuals and businesses to discharge or eliminate most of their debts through the liquidation of assets.