An Increase in the Number of Shares of Common Stock

question 322

True/False

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

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Definitions:

Joint Product

A product that is produced simultaneously with another product in the same process, often unable to be separated until after the manufacturing process.

Private Branding

A strategy where products manufactured by one company are sold under another company's brand or label.

Private Labeling

A retail strategy where products are manufactured by one company but sold under another company's brand, often to offer exclusive branded products without the cost of manufacturing.

Reseller Branding

Strategy where a company sells products manufactured by others under its own brand name.