Dividends Per Share

Multiple Choice

Dividends per share:

A) Increases as the net income increases as long as the number of shares outstanding remains constant.
B) Decreases as the number of shares outstanding decrease, all else constant.
C) Are inversely related to the earnings per share.
D) Are based upon the dividend requirements established by Generally Accepted Accounting Procedures.
E) Are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.