Which of the following is true of payment of dividends?
A) Unlike dividends on preferred stock, dividends on common stock are usually a stated amount.
B) A corporation has a legal obligation to pay a dividend to all its stockholders.
C) A corporation cannot pay any dividend to its common stockholders unless it pays the full dividend on its preferred stock.
D) Common stock sometimes includes a cumulative feature.
Correct Answer:
Verified
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