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Why would the bank want to monitor the dividend payment practices of the corporations it lends money to?
Wiki User
∙ 11y ago
If a corporation pays out all of its cash in dividends, it may put itself in a position where it does not have enough cash to pay the loan payments to the bank. Excessive dividends may also be an indication that the management of the corporation does not have good judgment about retaining sufficient capital in the corporation to meet corporate capital needs.
Wiki User
∙ 11y ago
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A payment to stockholders is called?
dividend
What is a payment to stockholders called?
a Dividend
What is the effect on shareholders wealth if the company didn't pay the dividend?
Non payment of dividend is to be differentiated from non declaration of dividend. Some companies, even though in profits, prefer to retain the profit in the business than disbursing dividends. This in facts maximises the shareholders wealth, due to the effect of compounding. Otherwise, if non payment of dividend is due to absence of sufficient profits, then the shareholders wealth diminishes.
What is the most likely prediction after a firm reduces its regular dividend payment?
Earnings are expected to decline.
What is the meaning of dividends?
The meaning of a dividend is a certain amount of money paid to an account on a regular basis. This can be payment to creditors, payment from stocks, bonds or any source of income.
Is payment of a dividend a requirement of a stock corporation?
No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.
A payment to stockholders is called?
dividend
What is a payment to stockholders called?
a Dividend
What is payment to stockholders called?
a Dividend
The dividend quote in paper is based upon?
The most recent dividend payment
What are dividend checks?
an order of payment (such as a check payable to a shareholder) in which a dividend is paid
What is a cash payment from a corporation's profit?
dividend.
What is the dividend for alcatel-lucent?
On 2/10/2011 the Board recommended no dividend payment for 2010.
Which financials statement does dividends go on?
Indiana unclaimed has a dividend payment to me. How do I get a dividend statement sent to me?
What is procedure of dividend payment?
Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.
What is payment of dividend?
Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.
Is payment of dividend part of financing activities?
Yes it is
