A dividend that represents a return to the stockholders of a part of their paid-in capital rather than a distribution out of retained earnings is called a cash dividend.

Name: A dividend that represents a return to the stockholders of a part of their paid-in capital rather than a distribution out of retained earnings is called a cash dividend.
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Question

Quizplus · Accepted Answer

A cash dividend represents a distribution out of retained earnings, not a return of paid-in capital.

A Dividend That Represents a Return to the Stockholders of a Part