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Which of the following statements regarding equity is false? Dividends declared reduce earned capital. Preferred shareholders are paid a dividend every year. Par value represents

Which of the following statements regarding equity is false?

Dividends declared reduce earned capital.

Preferred shareholders are paid a dividend every year.

Par value represents the legal capital that must be retained when a stock is issued.

Paid-in capital in excess of par value is an example of contributed capital.

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