A payment to shareholders from earnings or asset sales is called:
A)
share repurchase
B) dividend
C)
stock split
D) retained earnings
Option a, share repurchase refers to a company buying back its own shares from the marketplace.
Option b, dividend refers to distribution of a company’s earnings to its shareholders.
Option c, stock split refers to a company increasing its total number of total outstanding shares by splitting its existing shares into multiple shares.
Option d, retained earnings refer to the firm’s profits that are not distributed to shareholders.
Therefore, the answer is option b.
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