If a firm has a positive level of retained earnings can a dividend be paid?

Yes, a firm with a positive level of retained earnings can pay dividends, as retained earnings represent accumulated profits available for distribution to shareholders. However, the decision to pay dividends also depends on other factors, such as cash flow, the company's financial health, and its future investment plans. Ultimately, the board of directors will determine if and how much to distribute as dividends based on these considerations.