If Dividends Declared Per Share During 20x4 (The Base Year),20x5,and

question 38

Multiple Choice

If dividends declared per share during 20x4 (the base year) ,20x5,and 20x6 are $4.80,$3.60,and $4.32,respectively,the index numbers assigned to 20x5 and 20x6,respectively,are

• A)75 and 90.
• B)60 and 95.
• C)180 and 80.
• D)133.3 and 110.

---

Definitions:

Valuation-relevant

Valuation-relevant refers to information or factors that can influence the assessment of an asset's or company's value during a valuation process.

Transitory Earnings Component

The part of earnings believed to be temporary or non-recurring and not indicative of the company's ongoing financial performance.

Permanent Earnings

The portion of a company's income considered to be sustainable and repeatable, excluding one-time events or accounting anomalies.

Continuing Operations

Parts of a business expected to continue operating and contributing to earnings over the long term, excluding any discontinued operations.