The date on which a cash dividend becomes a binding legal obligation is on the

Step 1: Define the Problem

Identify the key components of the question that need to be addressed:

• Determine the specific date when a cash dividend becomes a binding legal obligation for a company.

Step 2: Break Down the Problem

Divide the problem into smaller, manageable parts:

• Understand the process of declaring and paying dividends.
• Identify the key dates involved in the dividend process.

Step 3: Apply Relevant Concepts

Use appropriate academic theories or formulas to solve each part of the problem:

• In the context of dividends, there are several important dates: declaration date, record date, ex-dividend date, and payment date.
• The declaration date is when the board of directors announces the dividend, creating a legal obligation.

Step 4: Analysis, Verify and Summarize

Analyze each part in detail if necessary, carry out the calculations by steps. Verify the calculations result and summarize the findings:

• The declaration date is crucial because it is when the company formally commits to paying a dividend, thus creating a binding legal obligation.

Final Answer

The date on which a cash dividend becomes a binding legal obligation is the declaration date.