When a firm earns its profits, management would usually decide to use the earnings for future investments and/or expansion of current operations. However, in order to satisfy its investors, the firm may also opt to allocate the earnings and distribute to its shareholders. What do you call this profit that is being distributed to the stockholders? * Par Value Dividend Market Value Face Value Iba ра:
When a firm earns its profits, management would usually decide to use the earnings for future investments and/or expansion of current operations. However, in order to satisfy its investors, the firm may also opt to allocate the earnings and distribute to its shareholders. What do you call this profit that is being distributed to the stockholders? * Par Value Dividend Market Value Face Value Iba ра:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:When a firm earns its profits,
management would usually decide to
use the earnings for future
investments and/or expansion of
current operations. However, in order
to satisfy its investors, the firm may
also opt to allocate the earnings and
distribute to its shareholders. What
do you call this profit that is being
distributed to the stockholders? *
Par Value
Dividend
Market Value
Face Value
Iba
ра:
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