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Morgantown Merchants is an all-equity firm with positive net income. Which one of the following will result if the firm pays a cash dividend?

Morgantown Merchants is an all-equity firm with positive net income. Which one of the following will result if the firm pays a cash dividend?
the number of shares outstanding will increase
the earnings per share will decrease
total assets will remain constant
the price-earnings ratio will decrease
total equity will increase

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