H&R Block is a well-known name, especially during income tax time each year. The company serves more than 24 million taxpayers in more than 10,000 offices in Canada, Australia, England, and the United States. The company's news releases for 2010 contained the following announcements: H&R BLOCK REPORTS CONTINUED IMPROVEMENT IN FINANCIAL RESULTS FOR FISCAL 2010 SECOND QUARTER KANSAS CITY, MO, Dec 08, 2009 (MARKETWIRE via COMTEX) - H&R Block Inc. (NYSE: HRB) today reported a net loss fram continuing operations for the fiscal second quarter ended Oct. 31, 2009, of $126.5 million, or 38 cents per share compared to a loss of $133.2 million, or 40 cents per share in the second quarter a year ago. H&R Block typically reports a second quarter operating loss due to the seasonality of its business. Source: H&R Block News Release. H&R BLOCK ANNOUNCES QUARTERLY CASH DIVIDEND KANSAS CITY, MO, Nov 30, 2009 (MARKETWIRE via COMTEX) - The Board of Directors of H&R Block Inc. (NYSE: HRB) has declared a quarterly cash dividend of 15 cents per share, payable Jan. 4, 2010, to shareholders of record Dec. 12, 2009. Source: H&R Block News Release. Required: 1. Explain why H&R Block can pay dividends despite the loss that it announced for the previous quarter. 2. What factors did the board of directors consider when it declared the dividends?