Question

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

a. authorized.
b. issued.
c. outstanding.
d. outstanding less the number of treasury shares.

Answer 1

c. outstanding

Step-by-step explanation:

The cash dividend is paid based on the outstanding shares. The outstanding shares are computed below:

Outstanding shares = Issued shares - treasury shares

Simply we deduct the treasury shares from the issued shares so that the outstanding shares can come and after that, the cash dividend could be computed

So, cash dividend is based on the outstanding shares