Which of the following statements about dividends is false?
Stock dividends increase the number of shares of stock issued and outstanding.
Cash dividends become a liability to the corporation when declared by the board of directors.
Cash dividends will reduce a company's net income.
Cash dividends and stock dividends reduce retained earnings.
2. Snapper Company issued a bond with the following characteristics on January 1, 2013. Face Value: $10,000 Stated Rate: 5.5% Market Rate: 6.0% Maturity: 20 years Issue Price: $9,400 How much cash interest will be paid to the bondholders each semi-annual interest payment date?
$282
$300
$275
$550