All else the same, which of the following is NOT a possible consequence of the firm making a regular cash dividend payment?

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Quizplus · Accepted Answer

Regular cash dividend payments affect a company's cash balance and retained earnings, as they are distributions of earnings to shareholders. Shareholders of record indeed receive the dividend payment, and it's common for the stock price to adjust on the ex-dividend date by approximately the amount of the dividend. However, regular cash dividends do not directly affect the common stock account, which represents the equity paid in by shareholders when they originally purchased shares from the company.

All Else the Same, Which of the Following Is NOT