Equity shareholders are the last in line for the payment of profits, after all other stakeholders such as debt holders and preferred shareholders have been paid. Equity shareholders only receive dividends after all other obligations have been met.
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Bottom-line profits
Entrepreneurship.
SmartShop's profits have been growing at 5% per year. This year their profits were approximately $500,000. What were their profits last year?
A dividend.
475000
The company's profits decreased by 12%
Payment of life insurance premia is allowed on line, along with payment over counter whether payment by cash or cheque.
474000
474000
BP annual profits for last year was $5.3 billion. This is pre-tax profits, and includes the fine they got from the Mexico Gulf disaster, which ran into billions.
475000