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A company that paid a dividend last year does not necessarily have to pay a dividend...

A company that paid a dividend last year does not necessarily have to pay a dividend this year. True False

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Answer #1

Answer is True.

The dividend will be paid only if the company makes a profit and declares a dividend. This is not the case with preference shares. ... Some preference shares are non-cumulative -- if the company can't pay the dividend for one particular year, the dividend for that year lapses.

So the payment of dividend depends upon on what type of share you are paying.

Thank you.

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