Question: Explain why some companies choose not to pay cash dividends
Explain why some companies choose not to pay cash dividends. Why do investors purchase stock in companies that do not pay cash dividends?
Answer to relevant QuestionsWhy doesn’t total stockholders’ equity equal the market value of the firm?Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $32 per share. Record the issuance of the preferred shares.Refer to the situation described in BE10–11, but assume a 2-for-1 stock split instead of the 100% stock dividend. Explain why Sandals did not record a 2-for-1 stock split. What are the number of shares, par value per ...Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2015, its first year of operations:January 2 Issues ...The financial statements of Friendly Fashions include the following selected data (in millions):Required: 1. Calculate the return on equity in 2015. Compare it with the amount calculated for Deckers Outdoor and Wolverine in ...
Post your question