If a Company Desires to Pay a Cash Dividend, but Does

question 8

Multiple Choice

If a company desires to pay a cash dividend, but does not want to increase its liabilities, it can:

• A)pay the dividend only out of retained earnings.
• B)pay the dividend on declaration date.
• C)issue a scrip dividend.
• D)pay the dividend on the ex-dividend date.

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Definitions:

Blood Plasma

The liquid component of blood that carries blood cells and other substances throughout the body, constituting about 55% of blood's volume.

Phlebitis

Inflammation of a vein.

Thrombophlebitis

Inflammation of a vein associated with the formation of a blood clot.

Varicosities

Abnormally enlarged, twisted veins that typically appear in the legs, caused by weakened valves and veins that struggle to return blood to the heart.