Question

What are the situations when firms pay dividend and when keep the more amount of retain earning and what is the possible utilization of retained earnings?

Answer 1

Answer:

i hope it will helps you

Explanation:

Yes, it is legal to pay dividends even when a company has negative retained earnings or even negative net income. Dividends are set and paid to owners of common and preferred shares at the discretion of the company's management & board of directors.