Question

Which of the following statements is NOT true? Group of answer choices Intelligent investors must be concerned about future after-tax profits. Corporate dividends are always paid in cash. Most board members like to keep stockholders happy. If a cash dividend is declared by the board of directors, each stockholder by law receives an equal amount per share. Few things will unite stockholders into a powerful opposition force more rapidly than omitted or lowered dividends.

Answer 1

Corporate dividends are always paid in cash is not true among the given statements.

Explanation:                                                                      

Corporates dividends are not always paid in cash sometimes they are paid in merchandise or as other assets. Dividends are earnings which corporations distribute to its stockholders and they are charge against the profit which the corporation generated over the specified period.

They are charged on the stock which is owned by all the shareholders/stockholders or other investors. The period which dividends are paid differs from one corporation to another. Some companies pay annually while others opt for quarterly payments or pay after 3 months.