A dividend proposed in the previous year and paid during the current year results in the cash from activity.
A
investing
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B
inflow
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C
financing
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D
outflow
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Solution
The correct options are C financing D outflow Proposed dividend is the dividend declared or proposed to be distributed among the shareholders of the company during a financial year which will be paid in the next financial year. A dividend proposed in the previous year and paid during the current year results in financing cash outflow.