A Company Declared and Paid $1 Million in Dividends to Its

question 192

Multiple Choice

A company declared and paid $1 million in dividends to its common shareholders.What effect did this have on the company?

• A) Earnings per share decreased.
• B) Earnings per share increased.
• C) The current ratio increased.
• D) The debt-to-equity ratio increased.

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Definitions:

Euphotic

Relating to the upper layer of a body of water through which sunlight can penetrate and support photosynthesis.

Bathyal

Pertaining to the mid-water or bathypelagic zone in the ocean, typically between 200 and 2,000 meters deep.

Abyssal

Pertaining to the deepest parts of the ocean, typically depths beyond 2,000 meters, characterized by high pressures, low temperatures, and complete darkness.

Periwinkles

Small marine snails found in the intertidal zones of shores, known for their distinctive shape and role in aquatic ecosystems.