What can a company do with the profits it earns?

What can a company do with the profits it earns?

Company earns profits and that money is put for the following use:-

1) The profit can either be re-invested in the business which is also called as retained earnings

2) The profit can also be paid to the shareholders as a dividend.

In many companies the retained portion of the earning and pay work as the remainder as a dividend.
What are the various choices available for a company to choose its dividend policy?
Dividend policy is an element of the financial management. It helps the company in capital markets...
What external factors determine the dividend policy?
The external factors which determine the dividend policy are as follows:-
Define a.) Stable dividend policy b.) No immediate dividend policy c.) Regular and extra dividend policy d.) Regular stock dividend policy
Stable dividend policy - This is also called Regular policy in this company pays dividend at fixed rate, and maintains it for long time even the profit fluctuates…
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