As of November 29,it Appears That Notel Will Report Earnings

question 256

Multiple Choice

As of November 29,it appears that Notel will report earnings per share (EPS) of $1.15 for the quarter ended November 30.Which of the following events would cause this EPS number to decrease,assuming the event occurs the morning of November 30?

• A)The company pays a supplier for inventory bought on account.
• B)The company declares,but does not pay,a cash dividend.
• C)The company purchases 10 shares of common stock in another company.
• D)The company reissues the treasury stock it holds.

---

Definitions:

External Financing

denotes the process of obtaining capital from outside sources, like banks or investors, to fund operations, expansions, or projects.

Market Value

The prevailing price for an asset or service that is available for transaction in an open marketplace.

Flotation Costs

The costs associated with issuing new stocks or bonds, including underwriting fees, legal fees, and registration fees.