Exercise 8-19 (Static) Requirements for declaring dividends LO 8-3

Anglin Incorporated expects to incur a loss for the current year. The chairperson of the board of directors wants to have a cash dividend so that the companys record of having paid a dividend during every year of its existence will continue.

Required:

What factors will determine whether the board can declare a dividend?

Note: Select all that apply.

Check All That Apply

Preferred stock

Cash

Common stock

Retained earnings