If dividends declared per share during 20x4 (the base year),20x5,and 20x6 are $4.80,$3.60,and $4.32,respectively,the index numbers assigned to 20x5 and 20x6,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 for a given year is calculated by taking the value for that year, dividing it by the base year value, and then multiplying by 100 to convert it to a percentage. For 20x5, the calculation is ($3.60 / $4.80) * 100 = 75. For 20x6, it's ($4.32 / $4.80) * 100 = 90.

If Dividends Declared Per Share During 20x4 (The Base Year),20x5,and