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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.
How do you find stockholders equity in a company's financial statements?
To find stockholders' equity in a company's financial statements, you subtract the total liabilities from the total assets listed on the balance sheet. This calculation represents the amount of the company's assets that belong to the stockholders after all debts are paid off.
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.
How to calculate stockholders' equity with dividends included?
To calculate stockholders' equity with dividends included, subtract the total dividends paid out to shareholders from the total equity of the company. This will give you the adjusted stockholders' equity that accounts for dividends.
A corporation gives out its profits as dividends paid to its?
Stockholders
What is the requirement for dividends for common stock to be paid in cash?
The requirement for dividends to be paid in cash to common stockholders is typically determined by the company's board of directors.
What is the term for a percent of the company's profit that is paid to the shareholders?
Dividends
