Dividends Per Share

question 284

Multiple Choice

Dividends per share:

• A) Increases as the net income increases as long as the number of shares outstanding remains constant.
• B) Decreases as the number of shares outstanding decrease, all else constant.
• C) Are inversely related to the earnings per share.
• D) Are based upon the dividend requirements established by Generally Accepted Accounting Procedures.
• E) Are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.

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Definitions:

Self-Perpetuating

A process, organization, or system that has the capability to renew or sustain itself indefinitely without external assistance.

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Refers to conditions or labels that are applied by external parties without the consent or agreement of the individuals affected.

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A journalist who adheres to ethical principles, maintains integrity, and demonstrates excellence in reporting, often in the pursuit of truth and public good.

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The practice of preventing unfair preferences or prejudices from influencing decisions or outcomes.