Multiple Choice
Which of the following is a difference between dividends on stock and interest on bonds?
A) A firm has a legal obligation to pay interest on bonds, whereas it has no legal obligation to pay dividends on stock.
B) Dividend on stock is paid by the issuer of the stock, whereas interest on bond is paid by the bondholder.
C) A firm has a legal obligation to pay dividends on stock, whereas it has no legal obligation to pay interest on bonds.
D) Dividend on stock is paid by the stockholder, whereas interest on bond is paid by the issuer of the bond.
Correct Answer:
Verified
Correct Answer:
Verified
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