Question 18

The ABC company just paid out cash dividends of $0.54 per share for common stocks in the first quarter of 2023. Which one of the following regarding dividends is correct?

A. ABC's senior secured debtholders are entitled to the dividend payout.

B. ABC's company cannot treat dividend payments as tax-deductible expenses.

C. If ABC fails to pay dividends in the rest quarters of 2023, it is considered an event of default.

D. ABC's dividend payment is approved by its shareholders at the annual meeting.