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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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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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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