Which of the following does not correctly describe the effect of Mogul Company declaring and distributing a 2-for-1 common stock split?
A)Mogul's current ratio remained the same.
B)Mogul's return on equity ratio remained the same.
C)Mogul's debt-to-equity ratio remained the same.
D)Mogul's earnings per share remained the same.

Question

Quizplus · Accepted Answer

Earnings per share decreased because the number of shares of common stock outstanding is doubled.

Which of the Following Does Not Correctly Describe the Effect