P30 per share B.Dividends cannot legally be reinvested in the same company where they were earned C.Dividends are usually paid quarterly by well established publicly traded companies D.Dividends are earned when you sell your shares for a higher price than when you bought them

P30 per share B.Dividends cannot legally be reinvested in the same company where they were earned C.Dividends are usually paid quarterly by well established publicly traded companies D.Dividends are earned when you sell your shares for a higher price than when you bought them

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 12MCQ

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Which of the following statements about dividends is TRUE?

A.Dividends are typically set between P20 and P30 per share
B.Dividends cannot legally be reinvested in the same company where they were earned
C.Dividends are usually paid quarterly by well established publicly traded companies
D.Dividends are earned when you sell your shares for a higher price than when you bought them

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