Cash dividends are paid on the basis of the number of shares

Question

Quizplus · Accepted Answer

Cash dividends are paid on the basis of the number of shares outstanding, which represents the total number of shares that have been issued by the company and are currently held by investors. This excludes treasury shares, which are shares that have been repurchased by the company and held in its treasury. Therefore, choices A and B (authorized and issued shares) are not relevant in determining the amount of cash dividends to be paid.

Cash Dividends Are Paid on the Basis of the Number