Income is wealth creation and dividend is wealth distribution. Hence it is logical that dividends are distributed from income. Yet, some accountants contest this assertion. Why would accountants challenge this notion? What would be an alternative explanation of how firms pay dividends? How would you argue which view is correct?

Answer rating: 100% (QA)

It is illogical to distribute dividends from income Dividends and share price growth are two ways to provide wealth to shareholders Dividends and share price growth interact if all earnings are paid o... View the full answer