Earnings per common share will immediately increase as a result of which of the following?
A) The sale of additional common shares by the company.
B) An increase in the dividends paid to common shareholders by the company.
C) An increase in the company's net income.
D) The issuance of bonds by the company to finance construction of new buildings.

Question

Quizplus · Accepted Answer

Earnings per common share increase when a company's net income increases. The sale of additional common shares, increase in dividends, and issuance of bonds do not necessarily lead to an increase in earnings per share.

Earnings Per Common Share Will Immediately Increase as a Result