Regular dividends are declared out of

Question

Quizplus · Accepted Answer

Regular dividends are typically paid out of a company's retained earnings, which are profits that have been earned but not distributed to shareholders in the form of dividends or stock buybacks. 
A) Paid-in Capital in Excess of Par Value refers to money that has been received from issuing stock at a price higher than its par value, and is not typically used to pay dividends. 
B) Treasury Stock refers to shares of a company's own stock that have been repurchased and are held by the company, and is not typically used to pay dividends. 
C) Common Stock refers to ownership stakes in a company held by shareholders, and is not typically used to pay dividends.

Regular Dividends Are Declared Out of