Which of the Following Statements Is Correct Concerning Stock Dividends

question 23

Multiple Choice

Which of the following statements is correct concerning stock dividends?

• A)common stock dividends cannot be paid if preferred stock dividends are in arrears.
• B)preferred stock dividends cannot be paid if common stock dividends are in arrears.
• C)neither common nor preferred dividends can be paid if accrued interest is in arrears.
• D)no stock dividends can be paid if the firm has no cash.

Understand the concept of international trade and its impact on both importing and exporting countries.

Identify the effects of tariffs and other trade barriers on domestic markets.

Analyze the implications of trade policies on producer and consumer surplus.

Understand the principle of comparative advantage and its role in shaping international trade patterns.

---

Definitions:

Loanable Funds

The market where savers supply funds to borrowers, often facilitated by financial institutions, influencing interest rates through supply and demand.

Interest Rate

The proportion of interest a borrower is charged for borrowing money from a lender.

Investment Spending

Expenditures made by entities (individuals, companies, or governments) on capital goods, including buildings, machinery, and technology, to increase productivity.

Saving Incentives

Financial or policy incentives designed to encourage individuals or companies to save money rather than spend it.