If a stock dividend were distributed, when calculating the current year's EPS, the shares distributed are treated as having been issued:
A) At the end of the year.
B) At the beginning of the year.
C) On the declaration date.
D) On the date of distribution.

Question

Quizplus · Accepted Answer

When calculating the current year's Earnings Per Share (EPS), shares distributed as a stock dividend are treated as if they had been issued at the beginning of the year. This is because the EPS calculation aims to reflect the impact of the stock dividend on the entire year's earnings, regardless of when during the year the dividend was actually distributed.

If a Stock Dividend Were Distributed, When Calculating the Current