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The proportion of profit paid to share holders is not fixed it depends on company policy as well as situation as well if company has feasible investing opportunities then it will opt for no dividend or if no opportunity then it may opt for even 100% dividend to shareholders.
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∙ 9y ago
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When a company makes earnings or a profit and they share this profit with the stockholders it's called?
Paid dividends
Which term describes the money paid to stockholders when a company makes a profit?
That is called "dividends".
Why is profit part of a firm's objective?
Profit is what is left over from a business after the bills are paid. without profit the company can not afford to re-invest in capital or have money to pay stockholders
What is the difference between preferred and common stockholders?
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
Why must stockholders pay taxes on dividends?
corporations must pay taxes on their incomes, profit is a form of income, and a dividend is a portion of corporate profits paid out to stockholders, and stockholders must pay personal income tax on those dividends.
Profits paid to stockholders are called what?
Profits paid to stockholders are called dividends.
What is the mening of dividend?
If you own shares in a publicly listed company (one where the shares are traded on a stock market) then, if the company makes a profit in a year, the profit is divided by the number of shares that exist and paid out to the share holders (in proportion to the number of shares they each hold). This payout is called a dividend.
A corporation gives out its profits as dividends paid to its?
Stockholders
What causes retained earnings in a company to decrease?
Retained Earnings is decreased by a loss for the year or dividends paid to stockholders.
What is the term for a percent of the company's profit that is paid to the shareholders?
Dividends
Do Dividends paid belong in the operating section of the satement of cash flows?
dividend paid belongs to financing activities in cash flow statement as dividend is paid to stockholders who invests in company.
How do public companies share their profit?
By dividends paid to the shareholders of the company.
