Dividend and Topic

As for the combination of cash and new shares, shareholders can take part of their money

Dividends paid by the corporation. Dividend distributions reduce the equity of the corporation and the share value declines accordingly.

17. Which of the following is not a procedure for control of cash payments? A. B. C. D. Checks should be properly authorized with approval signatures. The business should provide written

When a company decides to pay dividends, it has to be careful on how much it will be given to the shareholders. It is of no use to pay shareholders dividends

b) What is the relationship between net income on the income statement and the equity section on a balance sheet?

For managerial purposes, i.e., making decisions regarding the firm's operations, the standard financial statements as prepared by accountants under Generally Accepted Accounting Principles (GAAP) are often modified and used to create alternative data and metrics that provide a somewhat different picture of a firm's operations. Related to these modifications, which of the following statements is CORRECT?

a) Profit Sharing: return of some company’s profit to employees in the form of cash bonus or retirement supplement.

c. How should FPL choose between dividends and share repurchases as alternative modes of payment?

debt. The steady cash flow generated by the business, short-term bank loans, and the proceeds of the

firm’s financing, for example, issuing or repurchasing stock and borrowing or repaying loans. It also

A constructive dividend is a form of payment made by a corporation to its shareholders that

The fact that shareholders are taxed twice through this repayment methodology infers that dividends are not their repayment technique of choice. Furthermore, paying out cash reserves through dividends also has the effect of both reducing the company’s assets and also inhibited the company’s ability to fund future growth as Dividends reduce the company’s retained earnings.

There are two basic ways of financing for a business: Debt financing and equity financing. Debt financing is defined as 'borrowing money that is to be repaid over a period of time, usually with interest" (Financing Basics, 1). The lender does not gain any ownership in the business that is borrowing. Equity financing is described as "an exchange of money for a share of business ownership" (Financing Basics, 1). This form of financing allows the business to obtain funds without having to repay a specific amount of money at any particular time. There are also a few different instruments that could be defined as either debt or equity. One such instrument is stock options that an employee can exercise after so many years with the

A dividend is a usually distributed in cash form to stock holders of a corporation approved by the board of director. It may also include stock dividend or other forms of payment. A stock dividend represents a distribution of additional shares to common stockholders. Dividends are only cash payments regularly made by corporations to their stockholders.

distribution through equity and as a liability when approved by the relevant company’s shareholders meeting.