Which of the following statements about dividends is not correct?
A)Cash dividends are generally declared quarterly as a dollar amount per share.
B)Dividends can be declared on both preferred and common shares.
C)The board of directors is obligated to declare dividends.
D)Dividends can be in cash or stock.

Question

Quizplus · Accepted Answer

The board of directors is not obligated to declare dividends; it is at their discretion based on the company's profitability and financial health.

Which of the Following Statements About Dividends Is Not Correct