Is it possible for a company to pay dividends when it has a negative net income for
Question:
Is it possible for a company to pay dividends when it has a negative net income for the year? Could this happen for longer periods?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 92% (13 reviews)
For a particular year this can and often does happen Going ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
The next dividend payment by Mosby, Inc., will be $2.45 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever. If the stock currently sells for $48.50 per share,...
-
E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a...
-
Youre trying to determine whether or not to expand your business by building a new manufacturing plant. The plant has an installation cost of $17 million, which will be depreciated straight-line to...
-
Part A: The following departments of activities are recorded in the City of Atlantas Comprehensive Annual Financial Report in the appendix to this chapter. Indicate the type of fund that most likely...
-
Mr. Lee operates a green grocery in a building he owns in one of the outer boroughs of New York City. Recently, a large chemical firm offered him a position as a senior engineer designing plants for...
-
Which of the following correlation coefficients shows the strongest negative linear association? A. 0.013 B. 0.066 C. 0.598 D. 0.912
-
Jerome M. Eisenberg is an antiquities dealer and a self-proclaimed expert in classical antiquities with a doctorate in Roman, Egyptian, and Near Eastern art. Maurice E. Hall Jr. is an art dealer who...
-
Stahl Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher...
-
A psychrometer has a dry-bulb reading of 90F and a wet-bulb reading of 60F. Find each of the following measurements. (Use the data in this table as necessary.) (a) relative humidity (Enter your...
-
Fox Company purchased items of inventory as follows: May 3 100 units @ $3.05 May 10 150 units @ $3.10 May 15 120 units @ $3.15 By the end of the month of May, Fox had sold 125 units. If the company...
-
The YTM on a bond is the interest rate you earn on your investment if interest rates dont change. If you actually sell the bond before it matures, your realized return is known as the holding period...
-
Patience, Inc., just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent...
-
Find the rotational inertia of the system of point particles shown in the figure assuming the system rotates about the (a) x -axis, (b) y -axis, (c) z -axis. The z -axis is perpendicular to the xy...
-
Why would the diversity of languages spoken by persons within the healthcare workforce create teamwork problems among healthcare staff? What language etiquette could ease interpersonal and...
-
What are the primary inventory control policies, and how do they balance the costs of holding inventory and stockouts? Compare and contrast the Just-In-Time (JIT), Economic Order Quantity (EOQ), and...
-
Why is Giacomo Salvetti, the CEO of Cafes Monte Bianco, considering manufacturing private label coffee? What are the various factors in favor of having a private label brand versus a premium brand,...
-
Why should we implement industry 4.0 solutions and how does this concept help our businesses? (Provide examples)
-
1. Which financial and quality monitoring and control systems are used in a workplace (simulated workplace)? 2. what are 5 elements of a project management plan? 3. what is the role of 3 project...
-
The following selected information (in thousands) was taken from Fruition Collections Ltd.'s December 31 statement of financial position: Instructions (a) Calculate the current ratio for each of the...
-
In the current year, the City of Omaha donates land worth $500,000 to Ace Corporation to induce it to locate in Omaha and create an estimated 2,000 jobs for its citizens. a. How much income, if any,...
-
Bach Corp. had additions to retained earnings for the year just ended of $430,000. The firm paid out $175,000 in cash dividends, and it has ending total equity of $5.3 million. If the company...
-
Based only on the following information for Bennington Corp., did cash go up or down? By how much? Classify each event as a source or use of cash. Decrease in inventory......................$375...
-
Specialized ratios are sometimes used in specific industries. For example, the so-called book-to-bill ratio is closely watched for semiconductor manufacturers. A ratio of .93 indicates that for every...
-
"Beginning Transactions" on the first Excel worksheet will provide the Balance Sheet for 2019 and the Transactions for January 2020. On the second Excel worksheet, "Journal Entries" , you should...
-
Discuss feminist ideology a) What is feminism as an ideology? How do feminists explain and understand the root cause of gender inequality and what do they propose to do? Include a discussion of...
-
You invest $ 1 , 1 0 0 at a 1 2 % annual interest rate, stated as an APR. Interest is compounded monthly. How much will you have in 1 . 5 years? In 2 years? ( Do not round intermediate calculations....
Study smarter with the SolutionInn App