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:

Prostaglandins

A group of lipid compounds that have diverse hormone-like effects, including mediating inflammation and pain.

Epinephrine

A hormone and neurotransmitter, also known as adrenaline, that increases heart rate, muscle strength, blood pressure, and sugar metabolism.

Intracellular Mediator

Substances, often proteins or second messengers, within cells that transduce signals leading to various cellular responses.

Hormone Response

The body's reaction to various hormones, which are chemical messengers that regulate processes in our body.