Which of the Following Statements Regarding Dividends Is Incorrect

question 8

Multiple Choice

Which of the following statements regarding dividends is incorrect?

• A) Dividends are usually received twice yearly from a company.
• B) The payments of dividends are at the company board of directors' discretion.
• C) An investor is generally required to pay taxation on the final dividend payment.
• D) The taxation of dividends varies from country to country.

---

Definitions:

Share Options

Rights given by a company to its employees or directors to buy shares at a fixed price, usually after a specified period.

Vesting Date

The specified time at which an employee gains full control over the shares or stock options granted to them as part of their compensation package.

Repriced Option

An adjusted option where the exercise price has been changed, typically lowered, as a way to make the option more valuable or attractive.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations, reflective of what a willing buyer would pay a willing seller in an arm's length transaction.