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Examveda

Dividends paid to common shareholders and divided by common shares outstanding are equals to

A. earning per share

B. dividends per share

C. book value of share

D. market value of shares

Answer: Option B

Solution(By Examveda Team)

Dividends paid to common shareholders and divided by common shares outstanding are equals to dividends per share. Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time by the number of outstanding ordinary shares issued.

This Question Belongs to Commerce >> Financial Management

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