Question

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?A.dividends.B. stock payments.C. repurchases.D. payments-in-kind.E. stock splits.

Answer 1

Answer: A.dividends

Step-by-step explanation:

Dividends are cash payments made to shareholders of a firm out of its profits.

A stock split is when the number of outstanding shares of firm is increased by a definite number.

Stock payment is all forms of payment made to shareholders. It can include payment with dividends or property.

Share Repurchase is when a company purchases its shares from shareholders in the open market. It reduces the amount of shares outstanding.

Payment in kind is when the interest of a financial instrument is paid with additional debt or stock instead of cash.