Which one of the following statements related to common stock is correct?
A)Corporations are required to pay annual dividends to their common stockholders.
B)Corporations have the right to discontinue paying dividends.
C)Corporations pay dividends at the discretion of the firm's president.
D)Common stock is a form of corporate debt.
E)Common stock has a pre-defined liquidation value.

Question

Quizplus · Accepted Answer

Corporations have the right to discontinue paying dividends to their common stockholders at any time. Dividends are not mandatory and are paid at the discretion of the corporation's board of directors. None of the other statements are correct.

Which One of the Following Statements Related to Common Stock