Which One of the Following Is an Example of a Liquidating

question 7

Multiple Choice

Which one of the following is an example of a liquidating dividend?

• A)Valley Feed Mills recently sold its grain storage facility and is distributing the proceeds of that sale to its shareholders.
• B)Kate's Winery has excess cash that it wishes to distribute to its shareholders in addition to its normal cash dividend.This extra distribution usually occurs about once every year.
• C)Kurt's Music is planning to increase its quarterly dividend by 3 percent.
• D)The Dried Florist is preparing to pay its first annual dividend of $.08 per share.
• E)Hi Tek had an extraordinarily profitable year and has decided to do a one-time only $10 per share cash dividend.

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Definitions:

Foreign Market

Markets outside the domestic borders of a company's country of origin where it operates or sells its products and services.

Local Laws

Local laws refer to regulations, ordinances, and statutes that are enacted and enforced by a local government authority, applicable within a specific geographical area.

Right of First Refusal

A legal entitlement that permits its possessor the choice to engage in a commercial deal with the proprietor of an item, prior to the proprietor having the right to engage in that deal with another party.

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Obligations that parties are bound to perform as specified in a contract.