COMM 308 Chapter Notes - Chapter 22: Dividend Yield, Gross National Income, Retained Earnings

• School: Concordia University
• Department: Commerce
• Course: COMM 308
• Professor: Raad Jassim

Document Summary

Shareholders cannot force the members of the bod to declare a dividend. Bod cannot declare a dividend if by doing so it causes financial distress and makes the firm unable to fulfill its contractual commitments. If the bod declares a dividend anyway, the members of the bod can be held personally liable for damages. After the dividend payment, the value of the firm"s assets has to exceed the total of its liabilities plus stated share capital. Dividend cannot be used to strip cash out of a firm in a period of financial distress. Declaration date - when board of directors decides that firm will pay dividend. Holder of record - person who officially owns share or shares on given date. On most exchanges, common share transactions settled three business days after trade. For this reason, most exchanges, as well as most investment dealers for the over-the-counter market, establish an.