Dividends to common stockholders of a company are:

Question

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Dividends to common stockholders are a distribution of earnings that are paid only if declared by the company's board of directors. These payments are not legally required, and the board of directors can decide not to pay dividends if they deem it necessary for the company's financial health. Additionally, dividends are not tax-deductible expenses for the company. A rise in the market price of the firm's stock in the secondary market may or may not result in dividends being paid to common stockholders.

Dividends to Common Stockholders of a Company Are