Multiple Choice
Dilution in earnings per share occurs when a company with
A) a high P/E ratio buys a company with a low P/E ratio.
B) a low P/E ratio buys a company with a high P/E ratio.
C) a high growth rate in earnings per share buys a company with a low growth rate in earnings per share.
D) a low growth rate in earnings per share buys a company with a high growth rate in earnings per share.
Correct Answer:
Verified
Correct Answer:
Verified
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