Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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Chapter 14, Problem 3DQ
Summary Introduction

To Explain: Whether cash flow per share exceeds the dividends per share by a safe margin for A Company.

Dividend:

Dividend is the share of company’s earnings, which is decided by the board of directors to distribute among its shareholders. It is done when a company earns profit in excess, which it expected and from that profit, they reinvest certain amount in business and pay other portion as dividend.

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