Dividends are paid out of profits, and
A)dividends are guaranteed.
B)dividend payments must be approved by the firm's board of directors.
C)dividends are paid before a firm's taxes are paid.
D)dividends are usually paid twice a year.
E)dividends are guaranteed and paid twice a year.

Question

Quizplus · Accepted Answer

Dividend payments must be approved by the firm's board of directors, ensuring that the payment is appropriate based on the profitability and financial health of the company. Dividends are not guaranteed and the frequency of payments can vary depending on the company's policies. Dividends are typically paid out of after-tax profits.

Dividends Are Paid Out of Profits, and