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Shareholder in a Profitable Company

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I am having problems retaining many information in finance. Here is the question:

If you are a shareholder in a profitable company, would you expect a dividend to be paid, or would you be satisfied if all earnings stayed within the organization as retained earnings? Explain

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Solution Summary

This solution of 140 words explains how shareholders are paid in a company either with dividends or retained earnings.

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If I am a shareholder of a profitable company, my choice of receiving dividends or not would first depend upon my need for cash. If I am in need of cash for some purpose, I would certainly expect a ...

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