DQW1-2 - 2. What are the different types of dividends that...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. What are the different types of dividends that a company can pay out? Which type would you prefer? Explain why. When should a company pay dividends? How does a stock dividend differ from a stock split? The different types of dividends that a company can pay out: The types of dividends that a company can pay out are: cash dividends recipient receives a check shortly after the declaration; property dividends forms of compensation other than cash, i.e. merchandise, real estate, a commodity, or some other asset; liquidation dividends dividends issued at a rate from paid-in capital rather than being based on retained earnings; stock earnings a companys issuance of its own stock to its stockholders. Which type would you prefer? I think that as a shareholder of a company that I would want to receive a quick return on my...
View Full Document

Ask a homework question - tutors are online