Which of the Following Dividends Are Never in the Form

question 63

Multiple Choice

Which of the following dividends are never in the form of cash?

• A)Regular dividends
• B)Special dividends
• C)Stock dividends
• D)Regular dividends, special dividends, and liquidating dividends

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Definitions:

Interest on Interest

The compound interest that is calculated not only on the initial principal but also on the accumulated interest of previous periods.

Time Value

The principle that current money has a higher value than the same amount would in the future, given its potential to earn more.

Money

A medium of exchange that is widely accepted in transactions for goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Compounding

A method in which an investment's worth grows over time as the returns, including both capital gains and interest, accumulate interest.