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Q: Can cash dividend be declared more than profit?
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Is profit more important than cash?

Profit and cash can be the same thing. You can have profit on the books and not have the cash because it can be tied up in various processes. Your actual disposable income is the most important.


What is dividend in business?

A certain portion of the profit which is distributed to the shareholders is called a dividend. The shareholders are the owners of the corporation. _____________________________________________________________________________________ A share of the after-tax profit of a company, distributed to its shareholders according to the number and class of shares held by them. Smaller companies typically distribute dividends at the end of an accounting year, whereas larger, publicly held companies usually distribute it every quarter. The amount and timing of the dividend is decided by the board of directors, who also determine whether it is paid out of current earnings or the past earnings kept as reserve. Holders of preferred stock receive dividend at a fixed rate and are paid first. Holders of ordinary shares are entitled to receive any amount of dividend, based on the level of profit and the company's need for cash for expansion or other purposes. Refer to link below for more details.


What are the main functions of the dividends and profits?

Dividends are those where you get from the profits . dividend is that share or a part of profit of a company which is distributed among the share holders . if the the company gets more profit you can expect more return on your investment.


How does dividend affect share price?

The dividend is very attractive to potential investors, and if more people are buying the stock the price will go up. Also, on the days leading towards the ex-dividend date (the day you must own the stock to collect the dividend) many investors and institutions will buy up the stock to make a quick profit from the dividend which makes the share price skyrocket.


Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?

Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.

Related questions

What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


What is the differenc ebeween profit and cash?

cash is money in general but a profit if a little more than what you normally make


What is the treatment of proposed dividend?

A dividend is a stockhder's share of the profits from the company. This is paid pro-rata to the stockholders in either cash or more shares.


What is difference between Cash dividend and share repurchase?

A cash dividend is a distribution of money from a company's profits to its shareholders on a per-share basis. Shareholders receive the dividend in cash, which they can choose to reinvest or use as they wish. On the other hand, share repurchase is when a company buys back its own shares from the market, reducing the number of outstanding shares. This can increase the value of the remaining shares, as well as potentially benefit shareholders through capital gains if they choose to sell their shares back to the company.


Is profit more important than cash?

Profit and cash can be the same thing. You can have profit on the books and not have the cash because it can be tied up in various processes. Your actual disposable income is the most important.


What is the difference between profit and cash flows?

Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.


What is the difference between cash flow and cash?

Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.


What is dividend in business?

A certain portion of the profit which is distributed to the shareholders is called a dividend. The shareholders are the owners of the corporation. _____________________________________________________________________________________ A share of the after-tax profit of a company, distributed to its shareholders according to the number and class of shares held by them. Smaller companies typically distribute dividends at the end of an accounting year, whereas larger, publicly held companies usually distribute it every quarter. The amount and timing of the dividend is decided by the board of directors, who also determine whether it is paid out of current earnings or the past earnings kept as reserve. Holders of preferred stock receive dividend at a fixed rate and are paid first. Holders of ordinary shares are entitled to receive any amount of dividend, based on the level of profit and the company's need for cash for expansion or other purposes. Refer to link below for more details.


What are the main functions of the dividends and profits?

Dividends are those where you get from the profits . dividend is that share or a part of profit of a company which is distributed among the share holders . if the the company gets more profit you can expect more return on your investment.


How does dividend affect share price?

The dividend is very attractive to potential investors, and if more people are buying the stock the price will go up. Also, on the days leading towards the ex-dividend date (the day you must own the stock to collect the dividend) many investors and institutions will buy up the stock to make a quick profit from the dividend which makes the share price skyrocket.


Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?

Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.


How will withdrawing cash from my savings affect my profit rate?

bank profits rates can get affected with continuous withdrawals. Higher the balance more will be the profit earned.