The Annual Amount of Cash Dividends Per Share Distributed to Common

question 92

Multiple Choice

The annual amount of cash dividends per share distributed to common shareholders relative to the share's market price is called the:

• A) Dividend payout ratio.
• B) Dividend yield.
• C) Price-earnings ratio.
• D) Current yield.
• E) Earnings per sharE.

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Definitions:

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.

Assets

Resources owned or controlled by a person or company, expected to bring future economic benefits.

Credits

Accounting entries that increase liabilities or equity on the balance sheet, or decrease an asset or expense account on the income statement.

Dividends Accounts

Dividends Accounts represent the financial accounts used by a company to record the dividends paid out to shareholders, reflecting the distribution of earnings.