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Which of the following represents passive dividend policy ?

<p><strong>(a)that dividend is paid as a % of EPS,</strong></p> <p><strong> (b)that dividend is paid as a constant amount,</strong></p> <p><strong> (c)that dividend is paid <span style="text-align:justify;">after retaining profits for reinvestment,</span></strong></p> <p><strong><span style="text-align:justify;"> (d)all of the above</span></strong></p> <p style="text-align:justify;"> </p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/25
Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

Option-C.

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

C

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

D is the correct answer because dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense rather, it is the division of after tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section on the company's balance sheet - the same as its issued share capital. public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends.cooperatives on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense.

 

nitesh gautam
by nitesh gautam , article assitant , raj kumar & gupta co

C

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

(c) that dividend is paid after retaining profits for reinvestment

Asim Azaldeen Abdalrahman Mhammed
by Asim Azaldeen Abdalrahman Mhammed , Property Manager , TAAM PROPERTY

Answer (c)

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

C)

Basit Ali
by Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Option C is Correct

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