The board of directors of a public company is having its monthly meeting One of the items on the agenda is the possible distribution of a cash dividend to shareholders If the board decides to issue a cash dividend, the decision obliges the company to issue cash to shareholders based on the number o...

The board should consider the number of shares outstanding and the proposed dividend per share ...

The board of directors of a public company is having its monthly meeting. One of the items

Question:

The board of directors of a public company is having its monthly meeting. One of the items on the agenda is the possible of a cash to shareholders. If the board decides to issue a cash the decision obliges the company to issue cash to shareholders based on the number of shares each shareholder owns.
Required:
Before making its decision, what information about the company should the board consider? Think of the items on the that you saw in this chapter.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...