Dividends Per Share

question 19

Multiple Choice

Dividends per share:

• A) increase as the net income increases as long as the number of shares outstanding remains constant.
• B) decrease 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:

Dispositional Attribution

Attributing a behavior to some internal cause, such as a personal trait, motive, or attitude; an internal attribution.

Primacy Effect

The tendency to remember information that is presented first better than information that is presented later on.

Impression Formation

The psychological process by which individuals form opinions and judgments about other people based on available information.

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.