Are companies obligated to pay dividends on common stock?
Not what you're looking for?
Are companies obligated to pay dividends on common stock? Explain.
Purchase this Solution
Solution Summary
The solution explains the two types of investment returns sought by investors in stock of corporations. It discusses dividend payments using a current stock market example for easier understanding.
Solution Preview
If obligated means required, the answer is no, although investors want and expect a return on their investment.
There are two kinds of returns for investors: dividends and growth in the price of the stock. Certain types of companies will purposely ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Motivation
This tests some key elements of major motivation theories.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.