When a Firm Implements a Stock Split, What Effect Does

question 46

Multiple Choice

When a firm implements a stock split, what effect does the split have on the earnings per share (EPS) of the firm?

• A)EPS will rise.
• B)EPS will remain the same.
• C)EPS will fall.
• D)EPS will rise initially before dropping.
• E)EPS will fall initially before rising to the old level.