If a company shows a loss in a given year,it cannot pay a dividend on the common stock.

Name: If a company shows a loss in a given year,it cannot pay a dividend on the common stock.
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Quizplus · Accepted Answer

A company can still pay a dividend on common stock in a year where it shows a loss. However, it is ultimately up to the board of directors to decide whether or not to pay a dividend based on various factors such as cash flow, debt obligations, and future growth opportunities.

If a Company Shows a Loss in a Given Year,it