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Author Question: Which of the following is correct regarding the payment of dividends by a corporation? (Read 84 times)

kaitlynndavis

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on: Aug 7, 2023

Question 1

Which of the following is considered a “positive” use of free cash flow?

◦

paying senior management bonuses


◦

repaying debtholders


◦

selling other nonoperating assets


◦

issuing new shares



Question 2

Which of the following is correct regarding the payment of dividends by a corporation?

◦

Dividends are paid out of EBIT and thus are not tax deductible by the corporation.


◦

Dividends are paid out of net after-tax income and thus are not tax deductible by the corporation.


◦

Dividends are paid out of net after-tax income and thus are tax deductible by the corporation in the following tax year.


◦

Dividends are paid out of EBIT and thus are tax deductible by the corporation.

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Marked as best answer by kaitlynndavis on Aug 7, 2023

swagmaster69

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kaitlynndavis

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

Jsherida

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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