Which of the Following Statements About Dividends Is False

question 326

Multiple Choice

Which of the following statements about dividends is false?

• A) Preferred stock dividends often represent a tax-advantaged investment for some corporations.
• B) Dividends paid to shareholders represent a return on the capital directly or indirectly contributed to the corporation by shareholders.
• C) The payment of dividends is at the discretion of the board of directors.
• D) The payment of dividends by the corporation is not a tax-deductible business expense.
• E) A corporation can be sued for not paying undeclared dividends.