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Why are large stock dividends accounted at par value?
ALL _______ Dividends increase the supply of stock, which decreases the price Large stock dividends have a significant effect on the price of stock, so the current market value can NOT be used to value large stock dividends – and the only remaining choice is PAR or STATED VALUE Small stock dividends have only a minor effect on prices, so the current stock price is still used to value the stock dividend Reduction in the price due to an increase in numbers of shares is called “dilution
Is dividends payable in stock a liability?
No,
What is the difference between dividends paid on common stock and preferred stock?
Dividends for preferred stockholders are often stated in advance and do not tend to fluctuate as much as those for common stock.
How do you get the stock dividends in a journal entry?
debit stock dividendcredit dividend income
Are dividends a right or a privilege?
Stock dividends are a right if the company is in profit and the shareholders approve the dividend payment.
What blue chip stock pays the highest dividends?
A few blue chip stock that pays the highest dividends are American Capital Agency, Southern Copper, and NuStar Energy L.P.
What describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
What accurately describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
What most accurately describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
For investing in shares do you need a tax return file?
No, the buying of stock in itself does not cause any taxable event. The selling would. Also, if the stock pays any dividends, the dividends could be taxable.
Is Walt Disney stock currently paying dividends?
Disney pays dividends once per year, usually in January. In 2008 and 2007, the dividends were $0.35 per share. It was $0.3057 in 2006. Here's hoping their either raise their dividend or offer it quarterly!
Which dividends do not reduce stockholders' equity?
stock dividends
Are dividends paid on treasury stock?
cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.
Do stock dividends always pay monthly?
No, stock does not always pay dividends at all much less monthly.
Why are large stock dividends accounted at par value?
ALL _______ Dividends increase the supply of stock, which decreases the price Large stock dividends have a significant effect on the price of stock, so the current market value can NOT be used to value large stock dividends – and the only remaining choice is PAR or STATED VALUE Small stock dividends have only a minor effect on prices, so the current stock price is still used to value the stock dividend Reduction in the price due to an increase in numbers of shares is called “dilution
Why would a corporation rather borrow money and pay interest than sell stock and then pay dividends?
Interest is tax deductible, so amounts paid lower the tax they would have otherwise paid. Dividends are paid with after tax earnings..there is no tax deduction for them. Of course, someone receiving interest pays tax on it at their ordinary income rate, and someone receiving dividends pays tax at the capital gain rate, which is lower.
Is dividends payable in stock a liability?
No,
