Carlton Containers has a dividend policy whereby the firm pays a constant annual dividend of $1.95 per share of common stock. The firm has 10,000 shares of stock outstanding. The company ???

- must always show a current liability of $19,500 ($1.95 x 1,000) for dividends payable.

- is obligated to pay $1.95 per share each year in perpetuity.

- must still declare each dividend before it becomes an actual company liability.

- will be declared in default if it does not pay at least $1.95 per share per year on a timely basis.

- has a liability that must be paid at a later date should the company miss paying an annual dividend payment.

Jun 03, 2022

Carlton Containers has a dividend policy whereby the firm pays a constant annual dividend of $1.95 per share of common stock. The firm has 10,000 shares of stock outstanding. The company ??? - must...