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Question(s) / Instruction(s):

Southwest Corp. had 600,000 shares of common stock outstanding on January 1, and issued an additional 900,000 shares on July 1.  Southwest had positive net income for the year.  Assume that the timing of this stock issuance during the year would not affect net income for the year.  Relative to that actual case, if Southwest had issued the 900,000 shares on September 1 rather than July 1, EPS for the year would have been

a.            higher.

b.            lower.

c.             the same.

d.            Can’t answer the question from the information provided.

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