A dividend is that part or portion of the profits of a corporation set aside, declared and ordered by the directors to be paid to the stockholders on demand or at a fixed time.Group of answer choicesTrueFalse

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.

The dividend decision refers to:a.Determining the amount of dividend to be paidb.Deciding whether to pay dividends or reinvest earningsc.Choosing the form of dividend paymentd.Evaluating the impact of dividends on stock price

What is dividend ? Discuss the law relating to payment of dividend by companies?

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.