Question and answer
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. ]
Get an answer
Original conversation
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|

Question
Asked 9/7/2013 9:04:11 AM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
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)
Question
Expert Answered
Asked 9/7/2013 8:53:44 AM
0 Answers/Comments
•Describe a recent experience you’ve had where a mixed message muddled communication. How would knowledge of the six elements of communication have improved the situation?
Weegy: Knowledge management is fundamentally the management of corporate knowledge and intellectual assets that can improve a range of organizational performance characteristics and add value by enabling an enterprise to act more intelligently. [ ] (More)
Question
Expert Answered
Asked 9/7/2013 9:57:52 AM
0 Answers/Comments
21,943,022 questions answered
Popular Conversations
The Dietary Guidelines for Americans include all of the following ...
Weegy: D. do not drink alcoho User: What components of a food label can help consumers compare the amounts of ...
8/29/2015 2:28:18 AM| 2 Answers
Which of these religions is ...
8/29/2015 5:14:54 AM| 1 Answers
Who was at the top of the caste ...
8/29/2015 5:35:57 AM| 1 Answers
Weegy Stuff
S
P
C
L
P
L
1
P
P
1
P
1
P
L
P
R
Points 1278 [Total 11631]| Ratings 7| Comments 1208| Invitations 0|Offline
S
L
Points 798 [Total 1113]| Ratings 1| Comments 788| Invitations 0|Offline
S
1
L
L
Points 754 [Total 9222]| Ratings 3| Comments 714| Invitations 1|Offline
S
L
L
P
1
Points 737 [Total 9310]| Ratings 2| Comments 717| Invitations 0|Offline
S
Points 541 [Total 767]| Ratings 1| Comments 531| Invitations 0|Offline
S
Points 242 [Total 250]| Ratings 0| Comments 242| Invitations 0|Offline
S
Points 224 [Total 224]| Ratings 3| Comments 194| Invitations 0|Offline
S
Points 214 [Total 533]| Ratings 1| Comments 204| Invitations 0|Offline
S
Points 178 [Total 255]| Ratings 0| Comments 178| Invitations 0|Offline
S
Points 144 [Total 175]| Ratings 0| Comments 144| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.