Which Statement About Dividends Is Correct

question 16

Multiple Choice

Which statement about dividends is correct?

• A)Dividends on cumulative preferred shares are not discretionary payments.
• B)Dividends are mandatory payments required for both common and preferred shares.
• C)Dividends are discretionary payments that can be made for common and preferred shares.
• D)Dividends must be paid on common shares before dividends can be paid on preferred shares.

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Definitions:

Sensitivity

The quality or condition of being easily affected, influenced, or harmed by external forces or stimuli.

Persuasive Message

Communication designed to convince or influence the audience to adopt a particular viewpoint or action.

Secondary Purpose

An additional aim or goal that supports or complements the primary objective of an action or plan.

Future Communication

Refers to evolving methods and technologies for exchanging information, considering advancements in digital and interactive platforms.