Asked by Lindsay Armstrong on Jul 04, 2024
Verified
The date on which a cash dividend becomes a binding legal obligation is on the
A) declaration date.
B) date of record.
C) payment date.
D) last day of the fiscal year.
Declaration Date
The specific date on which a company's board of directors announces the issuance of a dividend.
Date Of Record
The cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend or distribution.
- Recognize the key dates involved in the process of dividend distribution and their relevance.
Verified Answer
CH
Cassandra HernandezJul 08, 2024
Final Answer :
A
Explanation :
The declaration date is when the board of directors announces and approves the payment of a dividend, making it a binding legal obligation.
Learning Objectives
- Recognize the key dates involved in the process of dividend distribution and their relevance.