Dividends are which one of the following?

Question

Quizplus · Accepted Answer

Dividends are paid out of aftertax profits. This means that the firm has already paid taxes on its profits before distributing dividends to its shareholders.

Answer: D
 Dividends are paid to holders of record as of the declaration date. The declaration date is the date on which a company's board of directors declares that a dividend will be paid. Shareholders who hold the stock on or before the declaration date are eligible to receive the dividend payment.

Therefore, the best choices are C and D.

Dividends Are Which One of the Following