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:

Depression

A psychiatric condition defined by a sustained low mood or apathy towards activities, significantly hindering daily operations.

Oversupply

A situation in which the quantity of a product or service exceeds the demand for it, often leading to lower prices and surplus.

Undersupply

A situation where the availability of a commodity or service is insufficient for the demand.

Serotonin

A neurotransmitter that plays a key role in mood regulation, sleep, and appetite control.