Ria Owns 500 Shares of Stock in the Omnibux Corporation

True/False

Ria owns 500 shares of stock in the Omnibux Corporation. She is pleased to learn that the company earned a very nice profit over the most recent operating period. The company has announced that it will pay each shareholder a dividend of $1 per share out of its after­tax profits. Because Omnibux has already paid taxes on this profit, this payment will represent tax­free income for Ria.