a. A corporation cannot pay a dividend if its legal capital is impaired or if it is

Question:

a. A cannot pay a if its legal capital is impaired or if it is insolvent.
b. The effective tax rate on capital gains can be less than the stated rate.
c. Managers and investors are more concerned with changes than levels.
d. Future stock price will be higher when a distributes cash by repurchases rather than cash dividends.
e. Stock dividends increase the number of shares that investors own and therefore increase shareholder wealth.
f. By increasing the number of shares, stock dividends dilute each shareholder's interest in the company and therefore reduce wealth.
True or false?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...