Dividend Policy
A dividend is a part of the profit paid to the shareholder in an organization. The management of the organization has the right to decide the policy for giving a dividend from the earnings to the shareholder. However, an organization is not in the obligation to declare a dividend for the investor. Dividend policy differs from organization to organization. As the management has the only authority to decide dividend rate, dividend amount, and time of dividend payout by considering all other elements that create an impact on the payment of a dividend.
Stocks And Dividends
Stock or equities are generally sold and bought in the Stock Exchange or which is popularly known as the stock market. Stocks are issued in the Stock Exchange for the sole purpose of raising funds for the Corporation or the company itself. Now since an individual has purchased a portion of the Corporation or company, he or she may claim to be a part of the earnings or profit of the company.
Lisa set up a savings plan with BMO whereby he deposits $344 at the end of each quarter for 1 years. Interest throughout the 1-year time period is 2.05% compounded quarterly. The amount in his account at that time will become a term deposit withdrawable after a further 5 years, where interest changes to 2.37% compounded semi-annually. Calculate the total interest earned on the investment.
Round your answer to the nearest dollar. Full solution to this problem required in the rough work.
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