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Which of the Following Is True of Payment of Dividends

Question 103

Multiple Choice

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:

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