A dividend may take any one of three forms. These are: Group of answer choices cash, debentures, or debt. cash, liabilities, or revenue. cash, property, or shares. cash, debt or liabilities.

A dividend is a distribution of: Group of answer choices revenue by a corporation to its owners. liabilities of a company to its shareholders. accrued expenses to a corporation’s shareholders. profit by a company to its shareholders.

Dividend policies in practice vary across companies based on:a.Industry norms and competitive factorsb.Regulatory requirements and tax implicationsc.Cash flow availability and future investment opportunitiesd.All of the above

Dividends are predominantly paid in: Group of answer choices cash. property. capital. shares.

Dividend policy of a firm is governed by:(i) Long Term Financing Decision:As we know that one of the financing options is ‘Equity’. Equity can either be raisedexternally through issue of new equity shares or can be generated internally throughretained earnings. For Equity, retained earnings are preferable because they do notinvolve any floatation costs (issue expenses).But whether to retain or distribute the profits, forms the basis of this decision.Further, payment of cash dividend reduces the amount of funds required to financeprofitable investment opportunities thereby restricting its financing options.In this backdrop, the decision is based on the following:1. Whether the organization has opportunities in hand to invest the profit,if retained?2. Whether the return on such investment (ROI) will be higher than theexpectations of shareholders i.e. Ke?

A stock dividend is recorded with a transfer from:Multiple ChoiceContributed capital to retained earnings.Retained earnings to contributed capital.Retained earnings to assets.Contributed capital to assets.Assets to contributed capital.