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Which of the statements below is FALSE? For the shareholder, receipt of dividends is a taxable event. A typical practice of many companies is to
Which of the statements below is FALSE?
For the shareholder, receipt of dividends is a taxable event.
A typical practice of many companies is to distribute part of the earnings to shareholders through cash dividends.
Unlike coupon payments on bonds, which are treated as an interest expense of the firm, common stock dividends are considered a return of capital to shareholders and not an expense of the firm.
The payment of cash dividends to shareholders is a deductible expense for the company.
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