what is Cash dividend , Finance, Other Engineering

Cash dividend

Companies mostly pay dividends in cash. A company should have enough cash in its bank account when cash dividends are declared. If it does most have enough bank balance, arrangement should be made to borrow funds. When the company follows a stable be made to borrow funds. When the company follows a stable dividend policy, it should prepare cash beget for the coming period to indicate the necessary funds, which would be needed to meet the regular dividend payment of the company it is relatively difficult to make cash planning in anticipation of dividend needs when an unstable policy is followed.

The cash account and the reserves account of a company will be reduced when the cash dividend is paid. Thus both the total assets and the net worth of the company are reduced when the cash dividend is distributed. The market price of the share drops in most cases by the amount of the cash dividend distributed.
Posted Date: 2/1/2012 12:51:47 PM | Location : United States







Related Discussions:- what is Cash dividend , Finance, Assignment Help, Ask Question on what is Cash dividend , Finance, Get Answer, Expert's Help, what is Cash dividend , Finance Discussions

Write discussion on what is Cash dividend , Finance
Your posts are moderated
Related Questions
Oil tank: The oil tank is usually mounted on the engine; it may be a separate unit or part of an external gearbox called the sump. It has provision to allow the system to be f


Real measurements never deliver the true value of the physical quantity or measurand. The measurement uncertainty consists of a random error and a systematic error. Most of the err

#questiWrite a program to find the area under the curve y = f(x) between x = a and x = b, integrate y = f(x) between the limits of a and b. The area under a curve between two point

Constant speeding propeller: The definition of a Constant Speeding propeller is 'A propeller, the pitch setting of which varies automatically to maintain a preselected constant

Need urgent help with Financial Management homework assignment - evaluating company "Billabong". Due Fri 8 June (Sydney, australia time).


Why is it important for engineering students to have financial management as a subject?

What isplant