Which of the Following Statements About Dividends Is not Accurate

question 50

Multiple Choice

Which of the following statements about dividends is not accurate?

• A)Dividends are generally reported quarterly as a dollar amount per share.
• B)Low dividends may mean high stock returns.
• C)The board of directors is obligated to declare dividends.
• D)Payment of dividends from legal capital is illegal in many states.

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Definitions:

Consolidated Balance

The combined balance sheets of a parent company and its subsidiaries, providing a complete picture of the financial condition of the entire group.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having voting rights to elect the board members.

Book Value

The amount of an asset's value as recorded in the company's books, representing its initial cost minus any depreciation, amortization, or impairment costs.

Acquisition

The act of acquiring control of another company or business unit by purchasing its shares or assets.