Question

What are the requirements to declare cash devidends​

Answer 1

Answer:

A company's board of directors announces a cash dividend on a declaration date, which entails paying a certain amount of money per common share. After that notification, the record date is established, which is the date on which a firm determines its shareholders on record who are eligible to receive the payment.

Answer 2

Answer:

To pay a cash dividend, a company must have earnings or retained earnings because normal cash dividends are a distribution of earnings. Second, a company must have adequate cash to fund the payment of dividends.

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