Question: Which statement is false? A. A corporation with positive net income must pay a dividend to its common shareholders. B. Shareholder dividends are tax-deductible. C.

Which statement is false?

  • A. A corporation with positive net income must pay a dividend to its common shareholders.
  • B. Shareholder dividends are tax-deductible.
  • C. Shareholders get their dividends before bondholders get theirs.
  • D. As a general rule, a higher P/E ratio indicates a less risky stock.
  • E. All of the above are false .

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