Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
FORMS OF DIVIDEND
Cash Dividend
Many Companies pay dividend in cash. Often cash dividend may be supplemented by a bonus issue (stock dividend). When the company chooses a stable dividend policy, it must be prepare a cash budget for the coming period to point out the essential funds, to meet regular dividend payments of the company. The cash account and the reserves account of a company will be reduced when the cash dividend is paid. Thus, both of the total assets and the net worth of the company are reduced when cash dividend is distributed. The market price of the share drops in most cases by the amount of cash dividend distributed.
Stock Dividend (Bonus Shares)
A stock dividend defines a distribution of shares in lieu of or as well as to the cash dividend to the existing shareholders. The announcement of stock dividend will raise the equity share capital and reduces the reserves and surplus (retained earnings) of the company. The declaration of stock dividend does not affect the total net worth or the wealth of shareholders. The EPS and market price per share will fall proportionately to the bonus issue. But in proportion to earnings of shareholders will continue unchanged.
Stock splits
A stock split is a technique to increase the no. of outstanding shares via proportional reduction in the par value of the shares. With stock split, the total net worth does not modify and the no. of outstanding shares increases with dilutions in EPS and a proportionate fall in the market price of a share. This technique is usually used to lesser the market price of a firm's stock by increasing the number of shares belonging to every shareholder in the order to increase the trading of the shares.
Reverse split
Under the condition of falling price of a company's share, the company may want to decrease the number of outstanding shares to enhance the market price for each share. The reduction of the number of outstanding shares by increasing for each share per value is known as Reverse split.
Stock Re-purchase
It is the Repurchasing by the firm of outstanding shares of its common stock in the market place.
Discuss the different ways political events in a host country may affect local operations of an MNC. Answer: The answer can be organized based on the three types of political ri
QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina
Should a firm hedge? Why or why not? Answer: Firms may not need to hedge exchange risk in a perfect capital market. But firms can add to their value by hedging if markets are
Discuss the process of Maximise Profits Let's first look at profit maximisation. Profit (also known as net income or earnings) canbe defined as the amount a business earns af
Determine the Management buy-outs Management buy-outs (MBOs) The management of company buy out the shareholders. Management will usually require financial backers (ventu
A mortgage may be defined as a pledge of property to secure payment of a debt. Depending upon the terms of mortgage agreed upon between the lender and the borrower, mor
This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control
discuss the applicability of an operating cycle to poultry business in uganda.
Q. Basic objectives of cash management? The basic objectives of cash management are two-fold: 1) To meet the cash disbursement needs (payment schedule); and 2) To minimize f
Financial Management and Materials Department The materials management is of utmost importance in a manufacturing firm and covers the areas such as procurement, storage, mainte
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd