Common stock dividends are paid out of profits and:

Name: Common stock dividends are paid out of profits and:
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Question

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Common stock dividends must be approved by the firm's board of directors before they can be paid out of the firm's profits. The other choices are incorrect. Common stock dividends are not guaranteed to be paid quarterly, they are not paid prior to the firm's taxes, they are not usually paid semi-annually, and they do not necessarily equal 100 percent of the firm's annual earnings.

Common Stock Dividends Are Paid Out of Profits And