Frozen Foods just paid out $3.62 a share to its shareholders. The cash for these payments came from a large sale of assets, not from any earnings of the firm. What are these payments to shareholders called?
A) Dividends
B) Distributions
C) Repurchases
D) Payments-in-kind
E) Stock splits

Question

Quizplus · Accepted Answer

These payments are called distributions, which typically refer to payments made from sources other than the company's earnings, such as the sale of assets. Dividends, on the other hand, usually come from the company's earnings.

Frozen Foods Just Paid Out $3