Dividends per share is equal to dividends paid:
A)divided by the par value of ordinary equity.
B)divided by the total number of shares outstanding.
C)divided by total shareholders' equity.
D)multiplied by the par value of the ordinary equity.
E)multiplied by the total number of shares outstanding.

Question

Quizplus · Accepted Answer

Dividends per share is calculated by dividing the total amount of dividends paid by the company by the total number of outstanding shares. This calculation gives us the amount of dividend paid per share of stock. Both the par value of the stock and total shareholders' equity are not involved in this calculation. Therefore, option B is the correct answer.

Dividends Per Share Is Equal to Dividends Paid