alleryStart learning →The declaration date is the day the board does what?
ACredits the bank accounts
BAnnounces its intention to pay
CCloses the share register
DFixes the share price
Answer & Solution
Correct answer: B. Announces its intention to pay
On the declaration date the board announces that it intends to pay a dividend.
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Related questions
Which limits can restrict how much a firm may distribute as dividend?Why might management avoid changing dividend policy abruptly?Which alternative to cash dividends may a firm choose when surplus cash exists?Which type of shareholder usually prefers earnings to be retained?With no NPV-positive projects and surplus cash, what should management do?Management knowing more than the market is called what?If dividends bear higher tax than gains, raising them does what to value?Per the Modigliani-Miller theorem, dividend policy has what effect on firm value?