Which Statement About Dividends Is Correct

question 16

Multiple Choice

Which statement about dividends is correct?

• A)Dividends on cumulative preferred shares are not discretionary payments.
• B)Dividends are mandatory payments required for both common and preferred shares.
• C)Dividends are discretionary payments that can be made for common and preferred shares.
• D)Dividends must be paid on common shares before dividends can be paid on preferred shares.

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Definitions:

Androgen Insensitivity Syndrome

A genetic condition where a person who is genetically male is resistant to male hormones, leading to the development of female physical traits but male genetic makeup.

Genetically Male

Refers to individuals who have one X chromosome and one Y chromosome in their 23rd chromosomal pair, determining male biological characteristics.

23rd Chromosome

One of the 23 pairs of chromosomes in humans, also known as the sex chromosomes (X and Y), which determine an individual's sex.

Biologically Male

Refers to individuals whose anatomy and genetic composition at birth include male characteristics such as XY chromosomes and male reproductive structures.