Holden Corporation Has Declared a Stock Dividend That Pays 5

question 4

Multiple Choice

Holden Corporation has declared a stock dividend that pays 5 shares of stock for every 10 0 shares owned. What will happen to EPS immediately upon the distribution of the stock dividend?

• A) EPS will increase by 5%.
• B) EPS will decrease by 5%.
• C) EPS will not be affected by the stock dividend.
• D) EPS will decrease by 4.76%.

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