BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS MATHEMATICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Share in the company’s profit
A
Dividend
B
Bonds
C
Share
D
Par Value
Explanation: 

Detailed explanation-1: -A stock dividend is a payment to shareholders that consists of additional shares rather than cash. The distributions are paid in fractions per existing share. For example, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by a shareholder.

Detailed explanation-2: -When a dividend is declared, it will then be paid on a certain date, known as the payable date. Steps of how it works: The company generates profits and retained earnings. The management team decides some excess profits should be paid out to shareholders (instead of being reinvested)

Detailed explanation-3: -A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders.

Detailed explanation-4: -Find out how much dividends per share the company pays annually. Divide such an amount by the stock price. Multiply it by 100. There – you have your dividend yield in percent.

Detailed explanation-5: -Dividend stocks can be defined as those publicly-listed companies which offer regular dividends to their shareholders. Such companies are mostly well-established and tend to possess a fair record of allocating earnings to their shareholders. The company stock should at least have a dividend payout ratio of 50%.

There is 1 question to complete.