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
Problem 1PS
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Question
Within a corporation, who decided whether to pay dividend?
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Step 1: Introduction - Dividends:
Dividends:
A dividend refers to a portion of a company's profits that is distributed to its shareholders as a return on their investment. It represents a way for a company to share its financial success with its shareholders. When a company generates profits, it can choose to reinvest those profits back into the business for growth initiatives or distribute them to the shareholders in the form of dividends. Dividends are usually paid out on a regular basis, such as quarterly or annually, and are based on the company's profitability and its decision to allocate a portion of its earnings to shareholders.
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