Are companies obligated to pay dividends on common stock?

Are companies obligated to pay dividends on common stock? Explain.

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/are-companies-obligated-to-pay-dividends-on-common-stock-7f63

Solution Preview

...ot pay dividends when the company is growing. Google is a good example of that philosophy. For growth companies, the investors understand that they may not receive any dividends. They will bet on the price of the stock increasing which was ...