In Response to a Temporary Decline in Earnings Per Share,most

question 31

Multiple Choice

In response to a temporary decline in earnings per share,most companies would

• A)decrease their cash dividend.
• B)not decrease their cash dividend.
• C)suspend their cash dividend.
• D)substitute a share dividend for the cash dividend.

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Definitions:

Stock Market

A marketplace where securities, such as stocks and bonds, are bought and sold.

Average Collection Period

The mean period it takes for an enterprise to collect payments due from its clients.

Financial Statements

Official records that detail a company’s financial activities and condition, including balance sheet, income statement, and cash flow statement.

Stock Market

A marketplace where stocks (shares in corporations) are bought and sold, providing companies with access to capital and investors with a slice of ownership and potential profits.