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.

---

Definitions:

Positive Integer

A whole number greater than zero.

Factor

In mathematics, a factor is a number or quantity that divides another number or expression evenly, without leaving a remainder.

Trinomial

An algebraic expression made up of three terms.

Factored Form

Expressing a polynomial as a product of its factors, which can be simpler polynomials or constants.