Rationalize the Numerator

question 112

Multiple Choice

Rationalize the numerator.

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Definitions:

Date of Declaration

The date on which a company’s board of directors announces the distribution of a dividend or other important decision.

Date of Record

The specific date set by a corporation’s board of directors after which the shareholders on record will be entitled to receive dividends or stock rights.

Cumulative Preferred Stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.

Dividends Per Share

The total dividends declared in a period divided by the number of outstanding shares of the company.