Net income that the company distributes to shareholders, Financial Management

Assignment Help:

The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?

No. Net income is not real money: it is a number that appear in the last line of the Profit and Loss Account which could differ according to the criteria used in accountancy, the provisions considered, etc.

 


Related Discussions:- Net income that the company distributes to shareholders

Explain opportunity costs affect the capital budgeting, How do opportunity ...

How do opportunity costs affect the capital budgeting decision-making process? Opportunity costs imitate the foregone benefits of the alternative not chosen while a capital budge

Expalin npv decision rule in basril plc, The NPV decision rule needs that a...

The NPV decision rule needs that a company invest in all projects that have a positive net present value. This presumes that sufficient funds are available for all incremental proj

Stepped spread floaters, Stepped spread floaters have a provision to ...

Stepped spread floaters have a provision to change the quoted margin at certain intervals over a floater's life. The quoted margin could either step to a higher l

Equity share valuation.., Mount Hutt Ltd. just paid dividend of $2.20 per s...

Mount Hutt Ltd. just paid dividend of $2.20 per share. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require an 11% return on Mou

Unity of command, Unity of Command Unity of command is the principle in...

Unity of Command Unity of command is the principle in which each subordinate should be responsible to only one manager.

Defects in the companys system, The case of McKesson & Robbins scandal (193...

The case of McKesson & Robbins scandal (1938) was happen due to internal fraud. This case is also happen by the faulty work of board of directors. The organization of McKesson & Ro

Types of frns, Types of FRNs In an era of innovations, while changing n...

Types of FRNs In an era of innovations, while changing needs and preferences of the investors trigger introduction of newer FRNs, the borrowers' funding specifications also nec

Beta value, Beta Value Risk is an important consideration while investi...

Beta Value Risk is an important consideration while investing in any security. It is the possibility that realised returns will be less than the returns expected. The degree, t

How do financial managers calculate the average tax rate, How do financial ...

How do financial managers calculate the average tax rate? Financial managers calculate the average tax rate by dividing tax dollars paid by earnings before taxes (EBT).

DIVIDEND DECISION, WHAT ARE THE IMPORTANCE OF DIVIDEND DECISION IN FINANACI...

WHAT ARE THE IMPORTANCE OF DIVIDEND DECISION IN FINANACIAL MANAGEMENT?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd