Which of the following is true about the payment of dividends by a firm? Group...
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Accounting
Which of the following is true about the payment of dividends by a firm?
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Dividends are paid only to the bondholders of the firm.
Common stockholders have priority over preferred stockholders with regard to dividend payments.
Preferred stocks pay accumulated dividends only once i.e. at the time of maturity.
Growth stocks pay little or no dividends; rather, the firms retain most of their earnings each year to reinvest in assets.
Common stockholders generally receive a fixed amount of dividend every year.
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