A tech company decides to pay dividends to shareholders out of its net earnings. this will decrease its
This program automatically uses a shareholder's dividends to acquire additional shares of a firm's outstanding or newly issued stock.
If a organisation pays inventory dividends, the dividends lessen the agency's retained earnings and boom the common stock account. stock dividends do not bring about asset changes to the balance sheet but as a substitute affect only the equity aspect with the aid of reallocating a part of the retained earnings to the commonplace inventory account.
Dividend- A dividend is the distribution of a organisation's income to its shareholders and is determined by means of the company's board of administrators. Dividends are frequently dispensed quarterly and can be paid out as cash or in the shape of reinvestment in additional stock.
The dividend yield is the dividend per proportion and is expressed as dividend/price as a percent of a organisation's proportion charge, along with 2.five%.
not unusual shareholders of dividend-paying corporations are eligible to obtain a distribution so long as they very own the stock earlier than the ex-dividend date.
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