3.8 Classification of Cash Flows Related to Share-Based Compensation. One reason companies use stock options to compensate employees is to conserve cash. Under current tax law, companies get to deduct compensation when the employees actually exercise options. Explain how the cash flow savings from stock option exercises affect the statement of cash flows.

Q: The payment of a dividend in the form of some asset other than cash.   Choices; Property dividend…

A: There are some companies which may distribute dividends other than cash or stock. Dividend can be…

Q: firm’s retained earnings represent: That portion of earnings put aside for reinvestment.…

A: Retained earnings is that portion of profit which is not distributed to shareholders and retained in…

Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…

A: Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…

Q: Several regulations limit dividend payments. Which of the following do not limit dividend payments?…

A: Several regulations limit dividend payments.  Including

Q: A company’s dividend policy refers to the manner in which a firm distributes its earnings to…

A: Firm issues various securities to arrange the funds for which the firm has to pay a return to…

Q: On the cash flow statement, what is the ramifications of announcing a cash dividend

A: This question explains about the cash flow statements and ramifications of announcing a cash…

Q: Why is the term liquidating dividend used to describe cash dividends debited against paid-in capital…

A: Cash dividends: This is the amount of cash distributed to stockholders by a company out its…

Q: If a corporation decides to pay out a cash dividend, when does that happen?

A: The Answer :

Q: Free cash flow is defined as

A: The Company should have Sufficient cash to run its Operations which are very important and key for…

Q: Question 27 Which of the following is NOT a potential use of Free Cash Flow to the Firm (FCFF)? Pay…

A: The concept of Free Cash Flow to the Firm (FCFF) is an important financial metric that measures the…

Q: The investment banks collect money from public, because O a. Business sells products. O b. Business…

A: Investment bank is referred as the bridge between large enterprises and investors. It aims to…

Q: If a company is thinking about distributing excesscash through a stock repurchase program in lieuof…

A: The company chooses to repurchase its shares in the following situation. To reduce outstanding share…

Q: What do an appropriation of accumulated profits and a declaration of a cash dividend have in common?…

A: Cash dividends are accounted for as a reduction of retained earnings(Accumulated profits)…

Q: when attempting to raise cash, a company may find it more advantageous to issue bonds rather than…

A: Bonds are the financial liability issued by the Company to raise capital which have a tax advantage…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: Which of the following does NOT set the upper limit on the amount of cash dividend that a company…

A: The correct answer is none of them - all of these factors can limit the amount of cash dividend a…

Q: It has become common for companies to offer their shareholders a choice between a cash dividend and…

A: Scrip dividend: The word scrip dividend denotes to the process of providing stockholders with the…

Q: ​In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…

A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…

Q: Financial accounting should provide information that: (Select all that apply) predicts a company's…

A: An organization's monetary transactions and activities are recorded, summarized, and reported using…

Q: Exactly when does a corporation decide to pay out a cash dividend?

A: -CASH DIVIDEND:  Cash dividends are considered Assets because they increase the net worth of…

Q: Which of the following is not one of the primary considerations management must make before a cash…

A: Answer: Primary considerations are those which directly impact any decisions made for the company.…

Q: What are the cash flow effects when a company uses the equity method to record its proportionate…

A: The equity method of financing is the method through which a corporation records and reports its…

Q: The effect of the declaration of a cash dividend by the board of directors is to Increase…

A: Cash Dividend A cash dividend is the distribution of fundss or cash paid to stockholderss usually as…

Q: What impact does the inability to issue common stock have on a not-for-profit business's capital…

A: We have to discuss the effect of the inability to issue common stock on Capital Structure and…

Q: Several regulations limit dividend payments. Which of the following do not limit dividend payments?…

A: the following do not limit dividend payments   a. Liability restriction

Q: When cash is paid to retire stock, what is the effect?

A: First of all, retirement of stock means that the company buyback/ repurchase its stock or shares.…

Q: C. Briefly explain the concept of Free Cash Flow and articulate how it can be employed by corporate…

A: The company will have revenue, and expenditure during the period. The expenses will be subtracted…

Q: Why do companies often repurchase stock instead of paying cash dividends? What is the effect for the…

A: Dividends are the returns that will be paid to the investors who hold the stock of the company. This…

Q: How does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Does the offer of receiving cash dividend and stock repurchase make any differences to an individual…

A: There are 2 concepts asked in the questions: - 1. Dividend on stock: In a general company, a…

Q: Share dividends OA. have no effect on total shareholders' equity OB. are distributions of cash to…

A: Lets understand the basics. Common stockholders invested in stock in order to gain soeme return on…

Q: The receipt of dividends from long-term investments in stock in classified as a canh infow from…

A: The cash flow statement keeps the record of cash inflow or outflow from the business under various…

Q: Dividend policy and decisions have value implications for the firm and shareholders because: O All…

A: A dividend policy is a company's approach to distributing profits back to its shareholders in the…

Q: 7.- The accounting profit of a company always represents available cash flows. true or false?…

A: It is pertinent to note that under the accrual basis of accounting transactions are recorded in…

Q: The cost of retained earnings is less than the cost of ordinary shares because of *

A: Issuance cost: This is incremental cost directly associated with issue of ordinary shares. This cost…

Q: Most states limit dividend policy by requiring that dividends ____.   a. not be paid unless the…

A: There are various policy which limit dividend policy