Business Studies, asked by 1036smitkv42020, 3 days ago

Private Investors Ltd. decided to raise funds through issue of equity (3) shares. The board of directors was in the favour of issuing equity shares because they know that a company has to pay dividend to equity shareholders only when it earns profits. Board of directors decided that they record losses for the first three years so that they do not have to pay dividends to the shareholders. Question: Are the directors right in their thinking? Why?​

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Answered by sanketnandane48
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Answer:

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