A corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock

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A corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock interest. If its affiliate completed a fiscal year profitably but paid no dividends, how would this affect the investor corporation?

a. Result in an increased current ratio.

b. Result in increased earnings per share.

c. Increase asset turnover ratios.

d. Decrease book value per share.

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Related Book For answer-question

Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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Question Posted: Mar 13, 2024 07:00 AM

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A corporation exercises significant influence over an affiliate in which it holds a 40 percent common stock

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The correct answer is d Decrease book value per share Heres why The corporation has significant infl...View the full answer

Advanced Financial Accounting

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