Dividends are typically paid in what form?

Dividends are typically paid in cash as a way for companies to distribute a portion of their earnings back to shareholders. Cash dividends provide immediate liquidity to investors, allowing them to use the funds as they see fit, such as reinvesting in more shares or spending the money. While dividends can be paid in other forms, such as stock or assets, cash remains the most common and straightforward method of distribution. This preference for cash dividends reflects their simplicity and ease of understanding for both companies and investors, making option C the correct answer.