A CFO of a publicly held corporation is trying to explain to his corporation's investors the options that his company has when it comes to profit. Which of the following is a possible way the company can deal with profit?(1 point)
Responses
When we earn a profit, we can only use the profit in the form of dividends.
When we earn a profit, we can only keep the profits as retained earnings.
When we earn a profit, we can distribute a portion (or all) of that profit to shareholders in the form of dividends, while any remaining profit is kept as retained earnings.
When we earn a profit, we can distribute a portion (or all) of that profit to shareholders in the form of retained earnings, while any remaining profit is kept as a dividend.
1 answer
When we earn a profit, we can distribute a portion (or all) of that profit to shareholders in the form of dividends, while any remaining profit is kept as retained earnings.