Green Roof Motels has more cash on hand than its operations require.Thus,the firm has decided to pay out some of its earnings in the form of cash to its shareholders.What are these payments to shareholders called?

Question

Quizplus · Accepted Answer

Dividends are payments made by a company to its shareholders as a distribution of its profits or earnings. It is a way for a company to share its financial success with its investors. In this case, Green Roof Motels has decided to pay out some of its earnings in the form of cash to its shareholders, which is called a dividend. The other options, such as stock payments, repurchases, payments-in-kind, or stock splits, do not refer to cash payments made by a company to its shareholders.

Green Roof Motels Has More Cash on Hand Than Its