Common Shares Outstanding Are Increased as a Result of a Stock

question 23

Multiple Choice

Common shares outstanding are increased as a result of a stock dividend or stock split.For purposes of calculating the earnings per share, when is the stock dividend or stock split considered to have occurred?

• A)at the beginning of the earliest comparative period for which earnings per share information is presented
• B)at the end of the earliest comparative period for which earnings per share information is presented
• C)at the beginning of the year declared
• D)as of the date of declaration

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Definitions:

What-If Analysis

A process that evaluates potential outcomes by changing variables in a model or spreadsheet.

Goal Seek

A function in spreadsheet software that finds the input value needed to achieve a specific target output in a formula.

Scenario Manager

A tool in spreadsheet software that allows users to create and analyze different scenarios by varying input values.

Solver

A software tool designed to find the optimal solutions to mathematical problems or equations based on given constraints.