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ID: 2508647 • Letter: U

Question

umpleted in one sitting. The que UlBleted a question hit "NEXT" to move on to the next question. JU DaLk and complete or change an answer by clicking on the question number in the box labeled Q clicking on "Previous" until you reach the question you wish to complete or change. Do not iut "SUBMIT have completed the test. After you hit "SUBMIT" the test is over and you will not be allowed to continue. D | Question 25 2 pts Dividends to common stockholders of a company are: O a distribution of earnings that are paid only if declared by the company's board of directors. O a legally required payment to the company's shareholders O a tax-deductible expense. O the result of a rise in the market price of the firm's stock in the secondary market. Next * Previous

Explanation / Answer

Dividends paid to common stock holders are from the profits of the company paid in the form of either cash or stock

Common stock holders are not gauranteed a fixed dividend. The company becomes liablie to pay dividends to common stock holders only when the dividends are actually declared

The answer is - a distribution of earnings that are paid only if declared by the company's board of directors