Solved

Which of the Below Statements Is TRUE

Question 4

Multiple Choice

Which of the below statements is TRUE?


A) Dividends (which are typically in the form of stock) are are distributions made by a corporation to its owners that represent a return on their investment.
B) Dividends paid to common stockholders are not legal obligations of a corporation and some corporations do not pay cash dividends.
C) At one time, dividend payments were taxed solely as ordinary income. Ordinary income means that the tax rate applicable is based on the investor's average tax bracket.
D) Depending on the individual's income tax rate, preferential dividends are taxed at either 5% or 15%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents