which of the following statements are true? 1. dividends only become a liability for...
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Finance
which of the following statements are true?
dividends only become a liability for the firm once they have been declared by the board of directors
dividends are tax dedutiable for the firm since they are an expense like interest payments
firms increase their dividend payout in order to reduce their tax liability
dividends on preferred stock tend to be cummulative, meaning that previouly forgone preferred dividends must be paid before dividends can be paid to common stockholders
dividends are oneway shareholders can receive cash in exhange from owning stock in a firm; the alternative source of cash for shareholders requires selling the stock to realize its capital gains
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