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Why do you think a company would want to retain earnings as opposed to distributing it to its shareholders?
. A corporation may retain a portion of its earnings and pay the remainder as a dividend. [ Distribution to shareholders can be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase. ]
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User: Why do you think a company would want to retain earnings as opposed to distributing it to its shareholders?





Weegy: . A corporation may retain a portion of its earnings and pay the remainder as a dividend. [ Distribution to shareholders can be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase. ]
Expert answered|selymi|Points 11291|

User: why would a company decide to perform a stock split?

Weegy: In a stock split, [ a company increases the total number of shares that are outstanding in the company. financial term definition - dictionary - stock splitFor instance - let's say that XYZ had a total of 10 million shares outstanding. The company then decides that they are going to institute a 2 for 1 share split. Now, instead of 10 million shares outstanding, the company will have 20 million shares outstanding. What does this mean for shareholders in the company? It means that they will own 2 shares of the company for every 1 share that they currently own. So, a person holding 100 shares of XYZ would now own 200 shares after the split had been completed. ]
Expert answered|selymi|Points 11291|

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Asked 9/7/2013 9:04:11 AM
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Assume you are a corporate shareholder. Would you prefer to receive a stock dividend or a cash dividend? Why?
Weegy: Neither a cash nor a stock dividend changes the shareholder’s net worth in the company. Cash-rich firms favor cash dividends, while growing firms or firms seeking to reduce their share prices may opt for stock dividends. [ A stock dividend is not taxable until sold – that is, if stock is the only option offered. Shareholders that are given the option of receiving either stock or cash dividends will be taxed even if they choose stock. In contrast, a cash dividend is always immediately taxable. ] (More)
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