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Answer (C) is correct . The stock split will double the number of shares outstanding to 2,000. The 50% split-up effected in the form of a dividend will increase the number of outstanding shares to 1,500. The higher number of shares in the stock split will result in a lower earnings per share than will result from the split-up effected in the form of a dividend.

Answer (A) is incorrect because The stock split results in a greater number of shares outstanding and a lower EPS.
Answer (B) is incorrect because The stock split results in a greater number of shares outstanding and a lower EPS.
Answer (D) is incorrect because The stock split results in a greater number of shares outstanding and a lower EPS.