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Which of the Following Is NOT True of Stock Dividends

Question 9

Multiple Choice

Which of the following is NOT true of stock dividends?


A) Stock dividends may be in the form of cash or additional shares of stock.
B) Stock dividends are typically paid out of long-term assets held for that purpose.
C) Stock dividends are typically paid out of current earnings.
D) Some well-established corporations pay out as much as 80% or more of their earnings in dividends.

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