Question: What legal restrictions may limit the amount of dividends to
What legal restrictions may limit the amount of dividends to be paid?
Answer to relevant QuestionsIn the introduction to the chapter we learned that Apple Computer (AAPL) recently rein-stated the payment of cash dividends, which had been suspended since the 1990s. What are some reasons that might have influenced the ...In the spring of 2014 the CFO of Placebo Pharmaceuticals, Inc. took a proposal to the firm’s board of directors to distribute a noncash dividend to the firm’s shareholders in the form of new shares of common stock. ...FarmCo, Inc. follows a policy of paying out cash dividends equal to the residual amount that remains after funding 60 percent of its planned capital expenditures. The firm tries to maintain a 40 percent debt and 60 percent ...A cash budget is usually thought of as a means of planning for future financing needs. Why would a cash budget also be important for a firm that has excess cash on hand? Tulley Appliances Inc. projects next year’s sales to be $ 20 million. Current sales are $ 15 million, based on current assets of $ 5 million and fixed assets of $ 5 million. The firm’s net profit margin is 5 percent ...
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