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.

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Definitions:

Standardized

refers to making something conform to a standard, ensuring consistency and uniformity across different situations or applications.

Differentiated

In a market, it refers to products that are distinguished from each other through variations in quality, features, branding, or customer service.

Oligopoly

A market structure in which a few firms sell either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependence (except when there is collusion among firms), and in which there is typically nonprice competition.

Homogeneous Product

A product that cannot be distinguished from competing products from different suppliers.