True or false If false, correct the statement a A company may not generally pay a dividend out of legal capital b A company may not generally pay a dividend if it is insolvent c The effective tax rate on capital gains can be less than the stated tax rate on such gains d Corporations are not taxed o...

a True b True c True The effective rate can be lower th ...

True or false? If false, correct the statement. a. A company may not generally pay a dividend

Question:

True or false? If false, correct the statement.
a. A company may not generally pay a out of legal capital.
b. A company may not generally pay a if it is insolvent.
c. The effective tax rate on capital gains can be less than the stated tax rate on such gains.
d. Corporations are not taxed on dividends received from other corporations.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...