Which of the Following Statements Is Correct Concerning Stock Dividends

question 24

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) Common and preferred dividends must be paid simultaneously.
• D) No stock dividends can be paid if the firm has no cash.

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Definitions:

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Official permission or a legal document granting the right to operate in a specific field or to carry out a particular activity.

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