Cash and bonus issue - dividend, Finance Basics

Cash and Bonus Issue - Dividend

For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a firm can pay stock dividend or Bank matter. Bonus matter involves matter of additional shares for free or instead of cash in their shareholding proportion to existing shareholders. Stock dividend or Bonus matter involves capitalization of retained earnings and does not rises the wealth of shareholders. This is since R. Earnings is converted into shares.

Posted Date: 1/31/2013 2:41:42 AM | Location : United States







Related Discussions:- Cash and bonus issue - dividend, Assignment Help, Ask Question on Cash and bonus issue - dividend, Get Answer, Expert's Help, Cash and bonus issue - dividend Discussions

Write discussion on Cash and bonus issue - dividend
Your posts are moderated
Related Questions
Comparison to a Competing Firm In Mergent Horizon, return to the competitor page, but now enter the list of competitors "As Defined by the Company."  From this list select a f

Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the security.

Question: a) A bank lends you $1750 at an initial nominal yearly interest rate of 7.5% compounded semi-annually. However, the interest rate will rise to 9.2% after the first

Given the following Present Value Plot for Projects A and B, which are mutually exclusive projects, answer the following questions: (i) What is the DCFROR for Project A? fo

Oogenesis - Gametogenesis The maturing procedure in oogenesis leading to the formation of ovum begins before birth but is not completed until after puberty. The primary oocyte

Advantage of Joint Stock Companies The company can own assets and incur liabilities on its own accord. Perpetual existence as or going to relate that allows the compan

Following details are related to three companies which are identical except in terms of ''''r''''. Company ABC Ltd. MNC Ltd. XYZ Ltd. Cost of capital 10% 10% 10% Earn per Share Rs


Disadvantages of Debt Finance It is a conditional finance that is it is not invested along with any approval of lender. Debt finance, whether used in excess may interr

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011. The company pays out 30 percent of its earnings as dividends per share (DPS), and the