Question text

Which of the following statements about dividends is false?

Select one:

a. Preferred stock dividends often represent a tax-advantaged investment for some corporations.

b. Dividends paid to shareholders represent a return on the capital directly or indirectly contributed to the corporation by shareholders.

c. A corporation can be sued for not paying undeclared dividends.

d. The payment of dividends by the corporation is not a tax-deductible business expense.

e. The payment of dividends is at the discretion of the board of directors.