The --------- on equity shares is not cumulative.
a. Dividend
b. Profit
c. Loss
d. Reserve
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b is the right
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The dividend on equity shares is not cumulative.
- A dividend is a payment made by a company to its primary shareholders from its profits or reserves.
- Cash dividends are cash outflows to a company's owners that are represented as a significant reduction in cash and retained earnings accounting.
- A range of 32-52 percent is regarded as stable and fair from the standpoint of dividend investors.
- A company that pays out nearly half of its revenues in dividends is likely to be well-known and a dominant player.
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