What is needed to pay a cash dividend? (hint – two things are required)
Chapter1: Financial Statements And Business Decisions
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What is needed to pay a cash dividend? (hint – two things are required)
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A cash dividend is a payment which is made by company to its shareholders out of its accumulated profits. Dividend transfers the economic value from the company to its shareholders. It is not necessary to pay dividend every year.Cash dividend is income to the investors but they are come up with tax consequences.A decision of paying dividend is taken by board of directors and approved in general meeting.
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