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Which of the following factor(s) is/are related to dividends, common stocks, preferred stocks and stocks holders? Factor -1: Common stockholders can potentially receive unlimited dividend
Which of the following factor(s) is/are related to dividends, common stocks, preferred stocks and stocks holders? Factor -1: Common stockholders can potentially receive unlimited dividend payments if the firm is highly profitable. Factor - 2: The payment and size of dividends on common stocks is determined by the board of directors of the issuing firm. Factor -3: Like interest payments on debt, a corporation defaults if it misses a dividend payment to common and preferred stockholders. A. Only Factors 1 -and 3 are correct B. Only Factor 2 is correct C. All Factors are correct D. Only Factors 1 and 2 are correct
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