ACC 291 Week 3 DQ 3
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This 0 page Study Guide was uploaded by an elite notetaker on Tuesday November 10, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 25 views.
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Date Created: 11/10/15
Week 3 DQ3 Discuss the different types of dividends that a corporation may issue Discuss why a corporation should issue dividends and discuss what dividend you would prefer The types of dividends that a company may issue are cash dividends where the company receives a check shortly after the declaration There are also property dividends these are forms of compensation other than cash For example merchandise real estate a commodity or another type of asset Then you have liquidation dividends these are dividends that are issued at a rate from paidincapital rather than being based on retained earnings Finally there is stock earnings when a company issues it39s own stock to its stockholders A company should only pay dividends if it is unable to reinvest its cash at a higher rate than its shareholders owners of the business would be able to if the money was in their hands If a company was earning 25 of equity with no debt management should retain all the earnings because the average investor probably won39t find another company or investment that is yielding that kind of return I think that as a shareholder of a company that I would want to receive a quick return on my investment and if that were the case I would prefer to receive cash dividends If I had a longterm interest in the company I would also like to receive cash but would probably like to receive stock dividends on occasion And if the company s revenues were projected to be lower in coming years I would likely opt for liquidation dividends so that I would be getting some sort of return on my investment ACC 291
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