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An established corporation currently pays out 50% of earnings as dividends. The CFO asks you whether...

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Accounting

An established corporation currently pays out 50% of earnings asdividends. The CFO asks you whether paying dividends toshareholders other than corporations is advantageous. How do yourespond?

Answer & Explanation Solved by verified expert
3.8 Ratings (493 Votes)
Dividend is a part of profit or earning earning available to equity shareholders of the company paid to their shareholder Paying dividend is a good practice which will help to keep their shareholder happy because they getting return on their investment in addition to capital appreciation on    See Answer
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