Question

Dividends are:Multiple Choicepayable at the discretion of a firm's president.treated as a tax-deductible expense of the issuing firm.paid out of aftertax profits..paid only to preferred stockholders.only partially taxable to high-income individual shareholders.

Answer 1

Answer:

The correct answer is letter "C": paid out of aftertax profits.

Explanation:

A dividend is a cash distribution by a company to its shareholders. It is a payment made as a bonus to investors from publicly listed firms or funds for putting their money into the project. They can be paid either in cash or in stocks or sometimes in other forms of property only when the aftertax earnings have been calculated.