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Which one of the following correctly reflects the effects on the financial statements caused by dividends declared on pasen i

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Answer #1

Solution 14:

Earning per share increases when dividend declared on positive investment owned by a firm.

Hence 2nd option is correct.

Solution 15:

Chief executives react very positively to current goodwill accounting because "Goodwill is no longer amortized so income is greater than prior accounting requirements"

Hence last option is correct,

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