Boston Free Press has a dividend policy whereby the firm pays a constant annual dividend of $2.40 per share of common stock

Boston Free Press has a dividend policy whereby the firm pays a constant annual dividend of $2.40 per share of common stock. The firm has 1,000 shares of stock outstanding. The company:    A.  must always show a current liability of $2,400, ($2.40 × 1,000), for dividends payable. B.  must still declare each dividend before it becomes an actual company liability. C.  is obligated to pay $2.40 per share each year in perpetuity. D.  will be declared in default if it does not pay at least $2.40 per share per year on a timely basis. E.  has a liability that must be paid at a later date should the company miss paying an annual dividend payment. Refer to section 8.2

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Which one of the following statements related to corporate dividends is correct?    A.  Dividends are nontaxable income to shareholders. B.  Dividends reduce the taxable income of the corporation. C.  The Chief Executive Officer of a corporation is responsible for declaring dividends. D.  The Chief Financial Officer of a corporation determines the amount of dividend to be paid. E.  Corporate shareholders may receive a tax break on a portion of their dividend income. Refer to section 8.2