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How Does the Issuance of a Common Stock Dividend Normally

Question 90

Multiple Choice

How does the issuance of a common stock dividend normally impact the calculation of a company's price-earnings (P/E) ratio?


A) It decreases the P/E ratio.
B) It would not be expected to impact the P/E ratio.
C) It increase the P/E ratio.
D) The impact on the P/E ratio cannot be determined.

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