The declaration of a cash dividend decreases a corporation's stockholders' equity and increases its liabilities.

Name: The declaration of a cash dividend decreases a corporation's stockholders' equity and increases its liabilities.
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When a corporation declares a cash dividend, it decreases its retained earnings, which is a component of stockholders' equity. This decreases the total stockholders' equity and increases the liability of the corporation to pay out the cash dividend to its shareholders.

The Declaration of a Cash Dividend Decreases a Corporation's Stockholders