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Which of the Following Statements Regarding Cash Dividends Is True

Question 235

Multiple Choice

Which of the following statements regarding cash dividends is true?


A) Growth and speculative companies typically pay little or no cash dividends.
B) Cash dividends to common and preferred stockholders are variable amounts.
C) Cash dividends are guaranteed payments to preferred and common stockholders.
D) All after-tax earnings of a corporation must be paid out to the common and preferred stockholders.

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