This article throws light upon the two main concepts of dividend. The concepts are: 1. The Irrelevance Concept of Dividend 2. The Relevance Concept of Dividend. Concept # 1. The Irrelevance Concept of Dividend: A. Residual Approach: According to this theory, dividend decision has no effect on the wealth of the shareholders or the prices of the shares, and hence [...]
This article throws light upon the top four legal and procedural aspects of payment of dividend. The legal and procedural aspects are: 1. Source of Declaring Dividend 2. Transfer to Reserves 3. Declaration of Dividend out of Past Profits or Reserves 4. Other Provisions and Aspects of Payment of Dividend. Legal and Procedural Aspects of Payment of Dividend: Source of [...]
Here is a compilation of top five problems on bonus issue of shares with their relevant solutions. Bonus Issue of Shares: Problem with Solution # 1: The following are the extracts from the draft Balance Sheet of A Ltd., as on December 31,2010 A resolution was passed by the company declaring bonus of 25% on equity shares to be provided [...]