KL Electronics has paid a quarterly dividend of $.42 per share for the past two years.This quarter, the firm plans to pay $.42 plus an additional $.05 per share.The firm has stated that it is uncertain whether it will pay $.42 or $.47 per share next quarter.Which one of the following is the best description of the additional $.05 that is being paid this quarter?

Question

Quizplus · Accepted Answer

The additional $.05 is considered an extra dividend because it is a one-time payment that is not expected to be a regular occurrence, unlike the normal quarterly dividend of $.42.

KL Electronics Has Paid a Quarterly Dividend of