A majority of the board of directors is sufficient to declare stock dividends.Group of answer choicesTrueFalse

The board of directors of a stock corporation may declare dividends out of the unrestricted retained earnings which shall be payable in cash, property, or in stock to all stockholders on the basis of outstanding stock held by them.Group of answer choicesTrueFalse

The date a board of directors votes to pay a dividend is called the

Factors determining dividend policy include:a.Profitability and liquidity of the companyb.Stock price and market conditionsc.Taxation laws and regulatory requirementsd.All of the above

Alex limited is facing loss in business during the financial year 2022-2023. In the immediatepreceding three financial years, the company had declared dividend at the rate of 7%, 11%and 12% respectively. The Board of Directors has decided to declare 12% interim dividend forthe current financial year atleast to be in par with the immediate preceding year. Is the act ofthe Board of Directors valid?

Australian law concerning how a company can pay a dividend is highly complex.Which of the following IS NOT one of the criteria directors must satisfy: Group of answer choicesThe dividend does not materially prejudice the company's ability to pay its creditorsThe dividend is fair and reasonable to the company's shareholders as a wholeThe company has sufficient net assets;Current ratio is at least 2:1