Can a company specifically borrow funds to pay out dividends? Please reply as soon as possible..
Can a company specifically borrow funds to pay out dividends? Please reply as soon as possible..
| Originally posted by : Priyank Banker | ||
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Can a company specifically borrow funds to pay out dividends? Please reply as soon as possible.. |
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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.
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