which of the following statements are true? 1. dividends only become a liability for...
80.2K
Verified Solution
Link Copied!
Question
Finance
which of the following statements are true? dividends only become a liability for the firm once they have been declared by the board of directors dividends are tax dedutiable for the firm since they are an expense like interest payments firms increase their dividend payout in order to reduce their tax liability dividends on preferred stock tend to be cummulative, meaning that previouly forgone preferred dividends must be paid before dividends can be paid to common stockholders dividends are oneway shareholders can receive cash in exhange from owning stock in a firm; the alternative source of cash for shareholders requires selling the stock to realize its capital gains
which of the following statements are true?
dividends only become a liability for the firm once they have been declared by the board of directors
dividends are tax dedutiable for the firm since they are an expense like interest payments
firms increase their dividend payout in order to reduce their tax liability
dividends on preferred stock tend to be cummulative, meaning that previouly forgone preferred dividends must be paid before dividends can be paid to common stockholders
dividends are oneway shareholders can receive cash in exhange from owning stock in a firm; the alternative source of cash for shareholders requires selling the stock to realize its capital gains
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.