A Company Issued Additional Shares

question 116

Multiple Choice

A company issued additional shares.What effect did this have 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:

Objection

A reason or argument presented by a customer against purchasing a product or service.

Salesperson

An individual who sells products or services to customers, aiming to meet or exceed sales targets.

Shelf Life

The length of time that a product remains usable, fit for consumption, or salable.

Problem

A situation, question, or condition that presents a challenge or difficulty requiring a solution or answer.