Cash dividends paid by a corporation: a) are an expense of the corporation that declared the dividend.

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Cash dividends paid by a corporation:

a) are an expense of the corporation that declared the dividend.

b) reduces the net income of the corporation that declared the dividend.

c) reduces the retained earnings of the corporation that declared the dividend.

d) reduces the retained earnings of the corporation that declared the dividend because net income is reduced by the amount of the dividend.

Related Book For answer-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Posted Date: Dec 01, 2020 09:32 PM

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Cash dividends paid by a corporation: a) are an expense of the corporation that declared the dividend.

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Fundamentals of Investments Valuation and Management

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