All of the following are true statements about common stock dividends except
A) dividends are based upon earnings.
B) no dividends may be paid.
C) dividends are usually between 1% and 3% of the stock's price.
D) dividends are contractually guaranteed to common stockholders.

Question

Quizplus · Accepted Answer

Dividends are not contractually guaranteed to common stockholders. The declaration and payment of dividends are at the discretion of the company's board of directors and are based upon various factors including earnings, financial performance, and future growth prospects. Choices A, B, and C are all true statements about common stock dividends.

All of the Following Are True Statements About Common Stock