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Based on your analysis, you prepared a report with several inferences. While proofreading, you come across the following inference. Consider this case: Recapitalization might increase the EPS, but the
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Based on your analysis, you prepared a report with several inferences. While proofreading, you come across the following inference. Consider this case: Recapitalization might increase the EPS, but the price per share remains the same. Is the statement true or false

User Jorre
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Answer: True

Step-by-step explanation:

Recapitalization refers to a process where a company alters its capital composition. For instance, it can acquire more debt whilst reducing its equity holdings.

Recapitalization can affect the number of shares that a company has and the weight of those shares in relation to debt but it does not change the price of the stock so this statement is true.

User MSIL
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