Which of the following statements are true regarding dividends?
Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
A stock dividend increases the number of outstanding shares.
A large stock dividend is a distribution of more than 25% of previously outstanding shares.
A company with a retained earnings deficit is never prohibited from paying cash dividends to its stockholders.
The payment date reflects the date a cash dividend is paid to stockholders.
Homework Answers
| The true statements are: |
| A stock dividend increases the number of outstanding shares. |
| A large stock dividend is a distribution of more than 25% of previously outstanding shares |
| The payment reflects the date a cash dividend is paid to stockholders |
| Option 1,2 and 4 are correct |
| A company with a deficit in retained earnings balance is prohibited from paying cash dividend to its stockholders. |
Which of the following statements are true regarding dividends?
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