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Which of the Following Statements Is FALSE

Question 3

Multiple Choice

Which of the following statements is FALSE?


A) From an accounting perspective,dividends generally reduce the firm's current (or accumulated) retained earnings.
B) The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.
C) Most companies that pay dividends pay them semiannually.
D) Occasionally,a firm may pay a one-time,special dividend that is usually much larger than a regular dividend.

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