Management and Organizational Studies 2310A/B Chapter Notes - Chapter 17: Cash Flow, Capital Structure, Dividend Yield

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Nick Khanert

Document Summary

There is no simple answer to if dividends should be paid or not, and when. Either give as much back to shareholders through dividends, or invest money in company for shareholders. Dividend: payment made out of a firm"s earnings to its owners, either in the form of cash or stock. Distribution: payment made by a firm to owners from sources other than current or accumulated earnings. Regular cash dividends cash payment made by the firm to its owners in the normal course of business, usually made 4 times a year: nothing unusual about the dividend, no reason it wouldn"t be continued. Dividends are decided upon by the bod. Once declared, it is a debt and cannot be rescinded. Usually expressed in dividends per share ($ per share: or percentage of the market price (dividend yield, or percentage of earnings per share (dividend payout)