radhatanaya

What is Dividend in financial management?

"Hi Docsity Community, can some one provide information on the...Rha Company owns 30 percent of the stock in Aju Corporation and receives dividends of $20,000 in a given year.Assume that Rha Company is in the 35 percent tax bracket. What is the company’s tax liability?"
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marphy
Rewards are payments expressed by a corporation to help its shareholder users. It does not take percentage of company profits released to help stockholders.
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christin
When a institution gets a profit as well as excessive, those funds may be used to two makes use of: it might possibly follow lso are-picked up the business enterprise (termed maintained net income), as well as it could be sent out to help shareholders. There's 2 solutions to deliver immediate payment for you to shareholders: discuss repurchases or maybe payouts.A lot of businesses hold part of their earnings and pay out the rest being a results.
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