Multiple Choice
Which of the following statements about dividends is correct?
A) Companies sometimes issue stock dividends to lower the market price per share of stock.
B) Stock dividends immediately increase the total value of the stockholders' investment.
C) Cash dividends and stock dividends both decrease total stockholders' equity.
D) A corporation has a legal obligation to pay dividends each year.
Correct Answer:
Verified
Correct Answer:
Verified
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