Q6: Which of the following statements to answer this question:

1. Dividends are legal obligations of the firm

2. Dividends are legal obligations of the firm after the board of directors declares them

3. Interest/coupon payments are a legal obligation of the firm

4. Interest/coupon payments are a legal obligation after the board of directions declares them

A) Only 2 is correct

B) Only 4 is correct

C) Only 3 is correct

D) Both 2 and 3 are correct

E) Both 2 and 4 are correct

F) Both 1 and 2 are correct

G) Only 1 is correct