(CMA Adapted, Jun 88 #19) Which One of the Following

question 79

Multiple Choice

(CMA adapted, Jun 88 #19) Which one of the following items would likely increase earnings per share (EPS) of a corporation?

• A)purchase of treasury stock.
• B)declaration of a stock split.
• C)declaration of a stock dividend.
• D)an increase in the common stock shares authorized to be issued.
• E)an increase in the preferred stock shares authorized to be issued.

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Definitions:

Comprehensive Income

Represents the total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not actually been sold yet.

Available-For-Sale Securities

Financial assets that are purchased with the intent to sell before their maturity date, and not held to maturity or traded actively.

Net Income

Represents the earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profitability.