In order to pay a dividend, the corporation must have these two things.

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asked Aug 6, 2024 65.1k views

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Michael Dorfman · Answer 1 · 2024-08-11T05:28:48+0000

In order to pay a dividend, the corporation must have:

1. Sufficient retained earnings.
2. Positive cash flow or adequate cash on hand to cover the dividend payment.

In order to pay a dividend, the corporation must have these two things.

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