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

Question

Quizplus · Accepted Answer

Dividends per share is calculated by dividing the total dividends paid by the total number of shares outstanding. Dividends paid are not related to the par value of the common stock or total shareholders' equity. Therefore, options A, C, D, and E are incorrect.

Dividends Per Share Is Equal to Dividends Paid