Question
Indiana Trucking currently has 50,000 shares of common stock outstanding. It has a dividend policy of paying a constant annual dividend of $1.00 per share
Indiana Trucking currently has 50,000 shares of common stock outstanding. It has a dividend policy of paying a constant annual dividend of $1.00 per share of common stock.
Pick the correct statement related to the firm's dividend from below. Multiple Choice
A. Indiana Trucking must always show a current liability of $50,000 for dividends payable.
B. Indiana Trucking incurs a liability that must be paid at a later date should the company miss paying an annual dividend payment.
C. Indiana Trucking is obligated to pay $1.00 per share each year in perpetuity.
D. Indiana Trucking must still declare each dividend before it becomes an actual company liability.
E. Indiana Trucking will be declared in default if it does not pay at least $1.00 per share per year on a timely basis.
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