Why are legal restrictions on paying out the funds

Assignment Help Financial Accounting
Reference no: EM132935442

Dividend Policy and Retained Earnings

Problem 1: Since initial contributed capital theoretically belongs to the stockholders, why are there legal restrictions on paying out the funds to the stockholders? Do you think this is fair?

Reference no: EM132935442

Questions Cloud

What is heart additional funds needed for the coming year : Heart's after-tax profit margin is forecasted to be 5 percent, and its payout ratio will be 60 percent. What is Heart's additional funds needed for coming year
Identify decision-making biases : Explain what the biases are, why they are a problem, and identify something that can be done to minimise their impact
What is the rate function primarily used for : What is the RATE function primarily used for? Why is the PMT value positive and the present value negative in the RATE function?
What would operating income have been using full costing : Ignoring income taxes, if the fixed factory overhead application rate was $8.00 per unit, what would operating income have been using full costing
Why are legal restrictions on paying out the funds : Since initial contributed capital theoretically belongs to the stockholders, why are there legal restrictions on paying out the funds to the stockholders?
How many headphones must ABC sell per week : Rent and other fixed costs are $270 per week; the income tax rate is 20%. How many headphones must ABC sell per week to meet its profit goal
What rate of return will anita need to reach target : If Anita uses all of her savings and saves £110 per month, what rate of return will Anita need to reach her target of £9,000 after four years?
How customer satisfaction should drive success : How customer satisfaction should drive success - If you define the requirements and deliver on all of them, but the customer does not want those requirements
What is accounts receivable turnover ratio for somerset co : What is the accounts receivable turnover ratio? All sales were on account and totaled 400,000 for the year. The accounts receivable balance on February 1, 2020.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd