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.

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Definitions:

Budget Resolutions

Legislative measures specifying the broad levels of taxation and spending, setting the framework for the detailed budget process.

Congressional Suggestions

Recommendations or proposals made by members of Congress intended to guide legislative decisions or policy formations.

Functional Finance

A budget philosophy using fiscal policy to achieve the economy’s potential GDP, rather than balancing budgets either annually or over the business cycle.

Chronic Deficits

Persistent shortfalls where expenditures exceed revenues over a long period, often leading to increased public debt.