Which of the following is usually not a prerequisite to paying cash dividends?

Question

Quizplus · Accepted Answer

Market value in excess of par value per share is not a prerequisite to paying cash dividends. The other options are prerequisites as the board of directors must formally approve the decision to pay cash dividends, the company must have sufficient cash to make the payment, and the source of the cash must come from sufficient retained earnings.

Which of the Following Is Usually Not a Prerequisite to Paying