Which one of the following statements concerning cash dividends is correct?
A) The chief financial officer of a corporation determines whether or not a dividend will be paid.
B) A dividend is not a liability of a firm until it has been declared.
C) If a firm has paid regular quarterly dividends in the past it is legally obligated to continue doing so.
D) Cash dividends always reduce the common stock account balance.
E) The dividend yield expresses the dividend amount as a percentage of the net income.
Correct Answer:
Verified
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