No, the payment of dividends shows that a company has made profits.
Explanation:
A dividend is a payout to its owners by a company, usually as income transfer. If a company earns a surplus or waste, it can spend the income (known as the withheld earnings) in a company and pay part of its gain to investors as a dividend.
Dividend only stated that during the last financial time span the company had only earned profit.
If many shareholders see it as a perfect chance to make profit, a stock would be worthwhile. Some other factors have influenced a stock so that it is valued, and dividends are only a small part.
For example, a great cash flow needs to be provided; the company needs to retain a good public reputation, a high debt-to-debt ratio, etc.
Answer:( B ) No, the payment of dividends indicates that a company has earned profits.
Explanation: I took the test
