When a Firm Declares a Special Cash Dividend of $1

question 46

Multiple Choice

When a firm declares a special cash dividend of $1 per share,shareholders realize that the:

• A) annual dividend will be $4 per share.
• B) dividends are considered regular.
• C) dividend is not likely to be repeated.
• D) stock must be owned prior to the declaration date to receive the dividend.

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Definitions:

Further Obligations

Additional duties or responsibilities that may be required from a party subsequent to the completion of a particular transaction or event.

Community Property

A form of ownership between married couples commonly found in some states where all property acquired during the marriage is considered equally owned by both spouses.

Prior to Marriage

The period or conditions that exist before the legal union of two individuals as partners in a personal relationship.

Tenancy at Sufferance

A legal situation where a tenant continues to occupy a property after the expiration of a lease, without the landlord's express permission.