Which One of the Following Statements Related to Cash Dividends

question 75

Multiple Choice

Which one of the following statements related to cash dividends is correct?

• A)Extra cash dividends cannot be repeated in the future.
• B)A dividend is never a liability until it has been declared.
• C)If a firm has paid regular quarterly dividends for at least five consecutive years it is legally obligated to continue doing so.
• D)Regular cash dividends reduce paid-in capital.
• E)The dividend yield expresses the annual dividend as a percentage of net income.

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Definitions:

Free Association

Method of uncovering unconscious conflicts in which the client is taught to talk about whatever comes to mind, without censoring any thoughts.

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior, focusing on the individual's potential for growth and self-actualization.

Innate Capacity

An inherent ability or potential present from birth, not developed through experience.

Psychosexual Stage

A concept in Freudian psychoanalysis that describes five stages of development (oral, anal, phallic, latency, and genital) through which a child's personality and sexual behavior mature.