Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 14.1, Problem 14.1BCQ
Summary Introduction

To discuss: The mechanics of the cash dividend payments.

Introduction:

Payment made to the shareholders in the mode of cash through electronic transfer or through check is termed as cash dividend. Cash dividend affects the balance sheet but there are no effects on the income statement. It is the taxable income to the shareholders.

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