Question 1
Dividends are a portion of
◦ earnings returned to the investor.
◦ the equity returned to the investor.
◦ liabilities returned to the company.
◦ assets returned to the company.
Question 2
All of the following are true statements about common stock dividends
except
◦ dividends are based upon earnings.
◦ no dividends may be paid.
◦ dividends are usually between 1% and 3% of the stock's price.
◦ dividends are contractually guaranteed to common stockholders.