Which of the Following Statements About Dividends Is Not Accurate

question 126

Multiple Choice

Which of the following statements about dividends is not accurate?

• A) Many companies declare and pay cash dividends quarterly.
• B) Low dividends may mean high stock returns.
• C) The board of directors is obligated to declare dividends.
• D) A legal dividend may not be a feasible one.

Identify the role and impact of organizational design in implementing business strategies.

Learn how differentiation strategies are applied across different markets and the importance of employee roles in this context.

Understand the relationship between an organization's culture and its human resource strategies.

Identify and describe the factors affecting human resource strategy formulation.

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Definitions:

Expected Value

The weighted average of all possible values for a given set of probabilities, used in statistics and financial decision making.

Firm's Stock

The shares of ownership in a corporation that represent a claim on the company's earnings and assets.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often used by investors to gauge the income-generating ability of a stock.

Capital Gains Yield

The increase in the price of an investment or asset, expressed as a percentage of the initial purchase price.