Statutory Restrictions on Dividend Payments Include All of the Following

Multiple Choice

Statutory restrictions on dividend payments include all of the following EXCEPT

A) if liabilities exceed assets.
B) if the amount of the dividend exceeds the firm's retained earnings.
C) if the dividend is being paid from capital invested in the firm.
D) if, because of the dividend payment, the firm intends to sell new common stock to fund its capital budget.