FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Q: Describe the process to compare a set of mutually exclusive investments with unequal service lives?
A: Companies always face a dilemma when it takes into consideration various projects that are mutually…
Q: Explain with examples if you can what's meant by this theory briefly Capital Structure Theory
A: Capital structure theory is an important theory in financial management of a business organization.
Q: What is Insolvencey?
A: Liability: It is the legal financial debt owed by a company to outside entities that arises over the…
Q: Identify and explain three different dividend policies.
A: Companies pay dividend to their shareholders. Each company has a policy to determine dividend…
Q: iscuss the various types of dividend policy
A: In finance there are three types of policy that are said to be most important the financing policy…
Q: 1. What are gains and losses? Please explain and provide an example for both.
A: Income Statement - The income statement includes Revenue earned and losses incurred due to…
Q: Briefly discuss clientele theory and signaling theory of dividend policy
A: Dividend policy  of a company is the policy to either retain or distribute the profit of a company.…
Q: Define dividend irrelevance theory
A: Dividend irrelevance theory: The dividend irrelevance theory is defined as the policy of dividend…
Q: What is the vested benefit obligation?
A: Pension Obligation: It refers to the commitment provided by the employer to pay its employees, the…
Q: Using
A: The agency theory is said to be the theory of the management which help in the examination of the…
Q: Why is share in a considered a is perpetuit
A: In finance a perpetuity refers to that financial asset or that financial security that goes on…
Q: Explain briefly the ideas behind the dividend irrelevance theory.
A: The dividend irrelevance theory was created by Modigliani and Miller in 1961. The authors concluded…
Q: Define Property dividend.
A: Definition:   Dividends: The dividend is the income of the shareholders for their shareholdings in…
Q: How is the compound interest used to establish economic equivalence?
A: Economic Equivalence means funds occurring at different time period will have different economic…
Q: are dividends considered Capital Gain? Give Code Section
A: Dividend represents the profit distributed among the shareholders of the company. Its is reported in…
Q: Define capital gain (loss)
A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…
Q: What are examples of each type of dividend?
A: Dividend:  Amounts that are paid regularly at the end of the year to the shareholder of the company…
Q: Define Gordon dividend discount model?
A: The Gordon, dividend discount model, also recognized as a version of the dividend discount model, is…
Q: Explain the approaches of dividend decision.
A: Dividend decisions are an important part of a company's overall financial strategy. They affect the…
Q: How are deductions and losses different? How are they similar? Explain
A: Deductions: As deductions, the existing expenses made for the development of current period profits…
Q: What is the crossover rate, and how does it interact with the costof capital to determine whether or…
A: The rate at which the net present value (NPV) of 2 ventures is equivalent is the crossover rate…
Q: What is low-regular-dividend-plus-extras policy?
A: There are different investment policies available for investors which give returns and advantages…
Q: How can capital gains and losses be offset against each other?
A: Capital gains and losses refer to the financial gains or losses that result from the sale or…
Q: Define Property Dividends.
A: The dividend is the income of the shareholders for their shareholdings in the company. The equity…
Q: Define special dividend
A: Dividends are part of companies earning distributed to a class of shareholders by mutual decision of…
Q: What is information content hypothesis (dividends)?
A: Managers of the company generally prefer not to reduce the dividends paid to the shareholders with a…
Question

What is a constructive dividend? Provide several examples of the term.

Expert Solution
Check Mark
Step 1

When a company gives some kind of economic benefit to a shareholder, with no expectation of any kind of reimbursement, that economic benefit will be considered as constructive dividend.

bartleby

Step by stepSolved in 2 steps

See solution
Check out a sample Q&A here
Blurred answer
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS