Understanding Dividends and Earnings

What is a common dividend?

• A dividend paid to preferred shareholders

• A dividend paid to common shareholders

• A dividend that is always cumulative

• A dividend that is never paid

What is a preferred dividend?

• A dividend paid to common shareholders

• A dividend paid to preferred shareholders

• A dividend that is always non-cumulative

• A dividend that is never paid

What does "cumulative preferred dividend" mean?

• Dividends that accumulate if not paid

• Dividends that are paid only once

• Dividends that are never paid

• Dividends that decrease over time

What is a non-cumulative preferred dividend?

• Dividends that accumulate if not paid

• Dividends that do not accumulate if not paid

• Dividends that are paid to common shareholders

• Dividends that are paid every month

How is dividend yield calculated?

What does EPS stand for?

• Earnings Per Share

• Earnings Per Stock

• Equity Per Share

• Equity Per Stock

How is Earnings Per Share (EPS) calculated?

What is dividend per share?

• Total dividends paid divided by the number of outstanding shares

• Total earnings divided by the number of outstanding shares

• Total dividends paid divided by the market price per share

• Total earnings divided by the market price per share

Which type of dividend is paid first?

• Common dividend

• Preferred dividend

• Non-cumulative dividend

• Retained earnings

What happens to unpaid cumulative preferred dividends?

• They are lost forever

• They accumulate and must be paid in the future

• They are converted to common dividends

• They are paid to common shareholders