Which of the Following Statements Correctly Describes Either the Dividend

question 40

Multiple Choice

Which of the following statements correctly describes either the dividend yield or the earnings per share?

• A)The dividend yield decreases when net income increases.
• B)Earnings per share is a measure per share of both common and preferred stock.
• C)The dividend yield increases when the market price per share decreases.
• D)Earnings per share decreases when dividends per share decrease.

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Definitions:

Deferred Tax Asset

A tax reduction amount that can be used to offset future taxable income, arising from temporary differences between book and tax income.

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.

Carrying Values

The book value of assets and liabilities as reported on the balance sheet, accounting for depreciation, amortization, and impairment.

Fair Values

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.