Can a company specifically borrow funds to pay out dividends? Please reply as soon as possible..
CA Paritosh Jaisalmeria
(Doing CFA-USA)
(90 Points)
Replied 01 January 2013
| Originally posted by : Priyank Banker | ||
 |
Can a company specifically borrow funds to pay out dividends? Please reply as soon as possible.. |
 |
No ways...A company can declare dividend fom its currents years profit, reserves & subsidy. Dividend means divide the "END". End means the end rsults ...that is PROFITS. In no ways, company can borrow funds and distribute it as profit.However for further details, u should read insti module.
CAclubindia
