Which of the following is true about the payment of dividends by a firm?

A. Dividends are paid only to the bondholders of the firm.
B. Common stockholders have priority over preferred stockholders with regard to dividend payments.
C. Preferred stocks pay accumulated dividends only once i.e. at the time of maturity.
D. Growth stocks pay little or no dividends; rather, the firms retain most of their earnings each year to reinvest in assets.
E. Common stockholders generally receive a fixed amount of dividend every year.


Answer: D

Business

You might also like to view...

The Invacare Corporation, an Ohio-based manufacturer of wheelchairs and other health care equipment, purchases parts and components worldwide and sells its products in 80 nations. Which effect has Invacare experienced as a result of international trade?

a. The company's Ohio workforce is less stable. b. Design, the purchasing of parts, and final assembly all occur abroad. c. Prices for aluminum, steel, rubber, and other materials have increased. d. The company is better able to withstand decreased sales in the U.S.

Business

A ________ is the basic unit of analysis for making merchandise management decisions.

A. merchandise group B. department C. stock-keeping unit D. merchandise category E. classification

Business

The AMA's definition of marketing reflects the view toward marketing activities as focused on ________.

A. increasing productivity B. advertising and selling C. producing innovative products D. maintaining relationships with suppliers E. creating and delivering offerings that have value

Business

What did Shimano do when sales of the coaster bicycle flattened?

a. They abandoned the product concept. b. They lowered the price point c. They started a new round of inspiration, ideation, and implementation d. They changed their marketing strategy design challenge.

Business