You Decide: Should companies be required to pay cash dividends on their stock to shareholders, or should

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You Decide: Should companies be required to pay cash dividends on their stock to shareholders, or should it be left up to the companies’ discretion whether they pay dividends or reinvest those funds back in the company?

Your father asked you why his investment in a publicly-traded stock is not paying him any dividends. He said, “As far as I know, they never have. I invested in the company to get something back and so far, I haven’t received anything. Shouldn’t the company be looking after its shareholders?” Should all companies be required to pay dividends?

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Accounting Concepts And Applications

ISBN: 9780324376159

10th Edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain

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