Which of the Following Is NOT True of Stock Dividends

question 16

Multiple Choice

Which of the following is NOT true of stock dividends?

• A)Stock dividends may be in the form of cash or additional shares of stock.
• B)Stock dividends are typically paid out of long-term assets held for that purpose.
• C)Stock dividends are typically paid out of current earnings.
• D)Some well-established corporations pay out as much as 80% or more of their earnings in dividends.

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