Which of the Following Statements Is Correct Concerning Stock Dividends

question 39

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