Dividend declared by a company ________. A. may be paid in kind B. must be paid in cash C. may be paid in cash or in kind D. may be paid in cash only

may be paid in kind
must be paid in cash
may be paid in cash or in kind
may be paid in cash only

The correct answer is: C. may be paid in cash or in kind.

A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be paid in cash, stock or property.

Cash dividends are the most common type of dividend. They are paid in cash to the shareholder’s registered address.

Stock dividends are a distribution of additional shares of stock to shareholders. They are usually paid out in proportion to the number of shares already held by the shareholder.

Property dividends are a distribution of

assets other than cash or stock to shareholders. They are usually paid out in proportion to the number of shares already held by the shareholder.

The board of directors of a company has the discretion to decide whether to pay a dividend, and if so, in what form. The board must consider the company’s financial condition, its liquidity needs, and the interests of its shareholders.

Dividends are a way for companies to return capital to their shareholders. They can also be used to attract and retain investors.