If dividends declared per share during 2008 (the base year), 2009, and 2010 are $2.40, $1.80, and $2.16, respectively, the index numbers assigned to 2009 and 2010, respectively, are
A) 75 and 90.
B) 60 and 95.
C) 180 and 80.
D) 133.3 and 110.

Question

Quizplus · Accepted Answer

The index number is calculated by dividing the dividend of the year by the base year dividend and then multiplying by 100. For 2009: ($1.80 / $2.40) * 100 = 75. For 2010: ($2.16 / $2.40) * 100 = 90.

If Dividends Declared Per Share During 2008 (The Base Year)