Question

H& R Block is a well- known name, especially during income tax time each year. The company serves more than 25 million taxpayers in more than 10,000 offices in Canada, Australia, England, and the United States. The company’s news releases for 2013 contained the following announcement:
H& R Block Announces Quarterly Cash Dividend
KANSAS CITY, MO — ( MARKETWIRE) — 03/ 06/ 13 — H& R Block, Inc. ( NYSE: HRB), the world’s largest consumer tax services provider, today announced that its Board of Directors declared a quarterly cash dividend of 20 cents per share, payable April 1, 2013, to shareholders of record as of March 18, 2013.
The following day, March 7, 2013, the Company announced a loss from continuing operations of US$ 17 million for the third fiscal quarter ending on January 31, 2013.
Required:
1. Explain why H& R Block can pay dividends despite the loss that it announced for the previous quarter.
2. What factors did the board of directors consider when it declared the dividends?


$1.99
Sales0
Views46
Comments0
  • CreatedAugust 04, 2015
  • Files Included
Post your question
5000