Corporations declare cash dividends from Retained Earnings.

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Corporations can declare cash dividends from their retained earnings, which are their accumulated profits from previous years, after accounting for any losses, dividends, and other adjustments. However, this decision is made by the corporation's board of directors, and it depends on various factors such as the company's financial performance, growth prospects, and cash flow requirements. Declaring dividends reduces the amount of retained earnings, and it may affect the company's ability to finance future growth initiatives or handle unexpected events.

Corporations Declare Cash Dividends from Retained Earnings