Lester's Frozen Foods just paid out $0.50 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?

Question

Quizplus · Accepted Answer

These payments are called distributions because they are not derived from the company's earnings but rather from the proceeds of a sale of assets. Dividends typically come from earnings, making "distributions" the correct term for payments from other sources like asset sales.

Lester's Frozen Foods Just Paid Out $0