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my account textbook states that it does, although i am unsure about the reasoning for it (and am currently searching for it)
-3rd year honours commerce student
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∙ 13y ago
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Cash dividends are paid on the basis of the number of shares?
outstanding
Dividends per share is equal to dividends paid....?
Dividends paid divided by the toal number of shares outstanding.
Dividends per share ratio?
DPS= d-sd/s d= sum of dividends over a period of a year sd= special one time dividends s= shares outstanding for the period
Will a 10 percent stock dividend increase the number of shares outstanding and decrease the book value per share?
A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares.
What do you mean by bonus share?
Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is due to the fact that since the total number of shares increases, the ratio of number of shares held to number ofshares outstanding remains constant.
Cash dividends are paid on the basis of the number of shares?
outstanding
Dividends per share is equal to dividends paid....?
Dividends paid divided by the toal number of shares outstanding.
How can a company increase equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
What is outstanding capital?
Outstanding capital refers to the number of shares that remain with the stockholders. This is the result of issued shared minus treasury shares and the dividends are paid based on these shares.
What are the advantages of preferred shares?
Preference shares are shares that receive dividends and repayments of capital in prority to ordinary shareholders. The rate of dividends are fixed. The disadvantage is that the rate of dividend will not increase if profits increase.
How can a company increase stockholders equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
Explain how both a stock split and a stock dividend affect the computation of the weighted average number of shares outstanding?
Stock splits and stock dividends both affect the Weighted Average Number of Shares Outstanding in the same way. When it occurs, you act as if it happened at the beginning of the year, and throughout previous periods.
Dividends per share ratio?
DPS= d-sd/s d= sum of dividends over a period of a year sd= special one time dividends s= shares outstanding for the period
What do you mean by number of outstanding shares?
Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!
How shareholders earn money?
Shareholders earn money through: Dividends: a portion of the company's profits paid to shareholders. Capital appreciation: an increase in the value of a company's stock, which can result in profits for shareholders when they sell their stock. Stock buybacks: when a company buys back its own shares, reducing the number of outstanding shares and increasing the value of remaining shares. 💵💯👉 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟗𝟕𝟕𝟕𝟔/𝐁𝐡𝐮𝐯𝐚𝐧𝟑𝟔𝟗/
Will a 10 percent stock dividend increase the number of shares outstanding and decrease the book value per share?
A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares.
The number of common shares outstanding can never be greater than the number of shares issued?
True
