In Response to a Temporary Decline in Earnings Per Share

question 128

Multiple Choice

In response to a temporary decline in earnings per share, most companies would

• A) decrease their cash dividend.
• B) not decrease their cash dividend.
• C) suspend their cash dividend.
• D) substitute a stock dividend for the cash dividend.

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Definitions:

Grapevine

An informal channel of communication within an organization, often characterized by the spread of rumors or unofficial information.

News Accounts

Reports or descriptions of recent events or facts, presented in newspapers, broadcasts, or online media.

Positive Impact

An effect or outcome that is beneficial or contributes positively to a situation or individual.

Enthusiastic Audience

A group of spectators or listeners who are highly interested and express excitement about the content presented to them.