CH11 - Chapter Eleven Corporate Dividends Corporate...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter Eleven Corporate Dividends
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Corporate Dividends Distribution Distribution : : Strictly, refers to payments to shareholders that are not a sharing of profits; loosely, refers to any type of payment to shareholders Dividend Dividend : : Strictly, refers to a distribution of a corporation’s profits to its shareholders; loosely, refers to any kind of payment made to shareholders
Background image of page 2
Restrictions Relating to Dividends Solvency and excess tests Legally available funds Tests for distribution Balance sheet test Equity insolvency test Modern test Contractual limitations Preferences Classes of shares
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Types of Dividends Cash dividend : cash distribution made by corporation Property dividend : distribution of some form of property by a corporation Share dividend : distribution by a corporation of its own shares Liquidation dividend : distributions made to shareholders when corporation liquidates (also called dissolution dividends)
Background image of page 4
Stock Split A stock split is a division of outstanding shares (also called a share split) .
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/06/2012 for the course PARA 092 taught by Professor Stephanieferill during the Fall '11 term at DeAnza College.

Page1 / 8

CH11 - Chapter Eleven Corporate Dividends Corporate...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online