According to the law, dividends may be funded from

Name: According to the law, dividends may be funded from
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Dividends can be funded from both past and current earnings, but not future earnings, as those are uncertain and not yet realized. Using past earnings allows a company to distribute profits that have already been earned, while using current earnings ensures that the company has enough cash flow to support the dividend payout.

According to the Law, Dividends May Be Funded from