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<p><strong>(a)that dividend is paid as a % of EPS,</strong></p> <p><strong> (b)that dividend is paid as a constant amount,</strong></p> <p><strong> (c)that dividend is paid <span style="text-align:justify;">after retaining profits for reinvestment,</span></strong></p> <p><strong><span style="text-align:justify;"> (d)all of the above</span></strong></p> <p style="text-align:justify;"> </p>
Option-C.
C
D is the correct answer because dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense rather, it is the division of after tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section on the company's balance sheet - the same as its issued share capital. public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends.cooperatives on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense.
(c) that dividend is paid after retaining profits for reinvestment
(c)
C)
Option C is Correct
