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Declarion of dividends is the right of the shareholders. The management, Board of directors, only recommend that dividend proposed for discussion in the General Body Meeting of shareholders, which normally approves the financial statments. The general body consisting of shareholders can modify the recommendations. The majory decision will prevail irrespective of the lack of / availability of profits.
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∙ 10y ago
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How does stockholders of Berkshire Hathaway profit?
You profit if this stock moves up in price. It does not pay a dividend. However, it could pay a dividend in the future.
Why does profit goes down since sales goes up?
The profit goes down when sales go up because either expenses go up too or price per item goes down.
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.
If the volume goes up what happens to the fixed cost and profit?
what effect does an increase in volume have on fixed cost per unit
What goes up and down stairs but doesnt move?
steps
What goes up and down a mountain but doesnt move?
sun
If you had a stock which paid a constant dividend with no growth in the dividend rate but its profits are increasing at a rate of 10 percent per year do you think the stock price will go up and why?
Yes. For example a company with a 10p dividend that stays constant but whose net profit increases must be spending that net profit on assets or growth or other 'good' things that should increase the value of the company - otherwise they would pay it out and increase the divi!
What is the accounting treatment of non divisible profit?
DIVISIBLE PROFITS :-According to black and white publishing company (1901) "Profit available for dividend means net profits after making any deduction which the directors can duly make."Profit which can be distributed legally in the form of dividends to the shareholders of the company are called divisible profits.There is no any particular rule about the determination of profit. By company law has laid down the following rules or principles which guides us to determine the divisible profits.PRINCIPLES OF DIVISIBLE PROFIT :-Following are the important principles of divisible profits :1. According The Company Rules :-The articles of association are the rules of the company. The directors are entitled to distribute the profits under rules. They also follow the company law. The dividend can be paid out of revenue profit.2. Follow The Court Cases :-While calculating the divisible profits, the court cases must be kept in mind. The auditors must know the decisions of the courts announced time to time.3. Profit Not Out Of Capital :-The capital can not be used to pay dividend. The revenue profits can be used for the payment of dividend.4. Approval Of Shareholders :-In the annual general meeting shareholders may approve the rate of profit recommended by the directors. So divisible profits can be used to pay as dividend after approval.5. Right Of Proposal :-The directors can purpose the rate of dividend out of divisible profits. After completing the legal formalities the directors can decide the dividend.6. Undistributed Profit :-It is the right of the directors to use such profit for the payment of dividend at the end of a year. It is a revenue of the provision year.7. Depreciation :-Before declaring revenue profits the depreciation on fixed assets must be charged. In manufacturing company it is compulsory to charge depreciation before the declaration of profits.8. Secrete Reserves :-If according the articles association it is allowed to create and use the such reserves then these can be used for the payment of dividends.9. Capital Profits :-Under certain conditions the capital profit can be used to pay dividend but articles association should allow the distribution of capital profit as dividend.10. Capital Loss :-Inspite of capital loss the dividend can be paid out of revenue profits. The capital profit must be used to eliminate capital loss first and then surplus can be used to pay dividends.11. Loss Of Provision Year :-If a company suffers a loss in one year but earns profit next year. Such loss can be adjusted by the company from benefit of the current year.12. Revaluation Of Assets :-After the revaluation of asset, if it becomes surplus then it can be used after realization. Profit may be paid after selling the assets.13. Revenue Profits :-According the principle of divisible profit dividend must be paid out of revenue profit. But it is essential that calculation should be correct.14. Asset Goodwill Written Down & Up :-If a company has written down good will out of profits, it may also write up this asset, with the appreciation. But the value written up should not excess than the true value.
Why doesnt it hurt when you throw a football?
actually its up to how far it goes it does hurt
What goes up and down but doesnt move?
age,temperature,time
What is Gross operating profit?
Gross Profit is the difference between money received from sales and the money you have paid out for the goods you sold. Operating Profit is the gross profit less any expenses you incurred while trading such as rent for premises, electricity, telephone bills Net profit is the operating profit less any tax and interest and dividend paid. The net profit is sometimes called "bottom line profit" Hope this clears things up!
What is operations profitability?
Gross Profit is the difference between money received from sales and the money you have paid out for the goods you sold. Operating Profit is the gross profit less any expenses you incurred while trading such as rent for premises, electricity, telephone bills Net profit is the operating profit less any tax and interest and dividend paid. The net profit is sometimes called "bottom line profit" Hope this clears things up!
