Statutory restrictions on dividend payments include all of the following EXCEPT
A) if the dividend is being paid from capital invested in the firm.
B) if, because of the dividend payment, the firm intends to sell new common stock to fund its
capital budget.
C) if liabilities exceed assets.
D) if the amount of the dividend exceeds the firm's retained earnings.
B
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Rally Co. has purchased some inventory from Kantar Corporation to sell to customers who will use the inventory primarily for consumer use. Which of the following is not correct?
A. If Kantar sells the inventory to Rally on credit and takes out a security interest using the inventory as collateral, this a purchase money security interest. B. If Kantar sells the inventory to Rally on credit and takes out a security interest using the inventory as collateral, this is a purchase money security interest in consumer goods. C. If Kantar sells the inventory to Rally but Rally pays for it by getting a loan from a bank who takes out a security interest using the inventory as collateral, this is a purchase money security interest. D. If a customer purchases some inventory on credit from Rally for home use and signs a written security agreement presented by Rally that lists the inventory as collateral for the credit, this is a purchase money security interest in consumer goods.
When no-par common stock without a stated value is issued for cash, the Common Stock account is credited for an amount equal to the cash proceeds
Indicate whether the statement is true or false