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Stockholders (shareholders) generally receive a return on their investment in a company's stock in the form...

Stockholders (shareholders) generally receive a return on their investment in a company's stock in the form of dividend payments and/or capital appreciation. True or False

This is for Strategic Management. Thanks

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Answer #1

The correct answer is true.

Financial objectives refers to the goal that the organization focus on achieving which is generally the return on investment during the period of its financial plan. So it involve growth in revenue, higher dividends, greater return on investment and a rising stock price. Dividend is nothing amount paid to the shareholders annually from the profits earned by the company. This can be increased by decreasing company's shares outstanding, increasing company's earnings (net income) and increasing company's dividend payout rate.

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