Stock Dividends Are Used to Signal to Investors That a Company

question 77

True/False

Stock dividends are used to signal to investors that a company is making profit.

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Definitions:

Equity Capital

The amount of money that is invested in a company by its owners, as opposed to borrowed funds or debt.

Tax-Deductible

A portion of expenses that can be subtracted from gross income to reduce taxable income.

Discriminatory

Refers to unfair treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, offering protection against high unexpected healthcare costs.