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What do dividends paid tell about companies in general?
Solution
When a company pays dividend, it means the company is going on well and is earning profits.
When a company earnsnprofits, it pays dividend to its shareholders and save some amount of
profits for the growth prospects. Dividend payment also helps to increase the value of share as
value of share is the present value of its future cashflows.

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What do dividends paid tell about companies in generalSolution.pdf

  • 1. What do dividends paid tell about companies in general? Solution When a company pays dividend, it means the company is going on well and is earning profits. When a company earnsnprofits, it pays dividend to its shareholders and save some amount of profits for the growth prospects. Dividend payment also helps to increase the value of share as value of share is the present value of its future cashflows.