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.