The declaration and payment of a cash dividend on common stock results in a reduction of the issuing corporation's total stockholders' equity.

Name: The declaration and payment of a cash dividend on common stock results in a reduction of the issuing corporation's total stockholders' equity.
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The payment of cash dividends to common stockholders reduces the retained earnings component of a corporation's stockholders' equity, resulting in an overall reduction of the total stockholders' equity.

The Declaration and Payment of a Cash Dividend on Common