Question

companies mostly pay dividends in? 1-stock dividend 2-cash 3-bonus shares

companies mostly pay dividends in?

1-stock dividend

2-cash

3-bonus shares

Homework Answers

Answer #1

1. Cash dividend:

Companies mostly pay dividends in cash to the stockholders.

Stock dividend : Companies may decide to distribute this type of dividend to shareholders of record if the company's availability of liquid cash is in short supply.

Bonus shares are shares distributed by a company to its current shareholders as fully paid shares free of charge.

The most common form of paying dividends to shareholders is through CASH.

So, the correct option is option 2.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A stock does not currently pay dividends but is expected to begin paying dividends in 3...
A stock does not currently pay dividends but is expected to begin paying dividends in 3 years. The first dividend is expected to be $3. For each of the next 2 years dividends will grow at 20% each year. You expect to be able to sell the stock for $100 after you collect year 5's dividend. If your required return is 11%, what is the most you should pay for the stock? To solve, use the cash flow register on...
Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for...
Valuing preferred stock Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a stock and a bond. For example, one of the major differences between preferred shares and bonds is that the issuing companies can suspend the payment of their preferred dividends without throwing the company into bankruptcy. However, similar to bonds,...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have been declared, but not paid. HEMI’s board of directors declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends were issued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMI’s accounting records. HEMI is authorized to issue 50,000,000 common shares. HEMI issued 12,000,000 common shares on January 2, 2019...
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock...
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock outstanding and 2,900 shares of $50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of $0.33 per share on common stock to shareholders of record on August 1, payable on August 5. On July 15, the board of directors declared a semiannual dividend of $4 per share on preferred stock to shareholders of record on August 5,...
Which of the following explains why most companies choose to pay stock dividends​ (split their​ stock)?...
Which of the following explains why most companies choose to pay stock dividends​ (split their​ stock)? ​(Select the best choice​ below.) A. By splitting the​ stock, investors get a stock dividend which increases value. B. Companies use stock splits to keep their stock prices in a range that reduces investor transaction costs. C. Stock splits increase the amount of stock each investor​ holds, thus increasing investor welfare. D. There is no good reason to do a stock splitlong dashjust ask...
if your stock paying annual dividends will pay a dividend d1 at t=1 of 1.47 and...
if your stock paying annual dividends will pay a dividend d1 at t=1 of 1.47 and have a growth rate of 11% between t=1 and t=2 and with a constant growth rate of 4% thereafter into the future, what should be the value of the stock at t=0 if the expected rate of return for the stock is 7%?
Problem 4 The Mark Company has $250,000 to pay dividends. The company has 25,000 shares of...
Problem 4 The Mark Company has $250,000 to pay dividends. The company has 25,000 shares of 8%, $50 par, preferred stock and 100,000 shares of $5 par common stock outstanding. The common stock is currently selling for $43 per share and the preferred stock is selling for $95 per share on the stock market. ​ Determine the amount of dividends to be paid for each class of stock in each of the independent situations. ​ 1) Preferred stock is nonparticipating...
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding....
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporation’s board of directors declares a 12% stock dividend to be issue on March 2, 2020. On the declaration date, the corporation’s common stock fair market value is $4. On declaration date, the corporation will record: * Debit Stock Dividend $144,000 Debit Stock Dividend $192,000 Credit Stock Dividend $144,000 Credit Stock Dividend $192,000 A Company has 30,000 shares of...
1. Blue Eagle Media stock is expected to pay a dividend of 3 dollars in 2...
1. Blue Eagle Media stock is expected to pay a dividend of 3 dollars in 2 years. The stock is currently priced at 88.39 dollars, is expected to be priced at 95.35 dollars in 1 year, and is expected to be priced at 103.63 dollars in 2 years. What is the dividend in 1 year expected to be for Blue Eagle Media stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.
If your stock paying annual dividends will pay a dividend D1 at t=1 of $1.93 and...
If your stock paying annual dividends will pay a dividend D1 at t=1 of $1.93 and have a growth rate of  10% between t=1 and t=2, and with a constant growth rate of 4% thereafter into the future, what should be the value of the stock at t=0 if the expected rate of return for the stock is 8%?  Notice that in this problem, expected dividends are given at t = 1, not t = 0! Answer to the nearest cent as...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT