The Amount of Money That Can Be Distributed to Shareholders

question 57

True/False

The amount of money that can be distributed to shareholders as a return of capital, without being a return on capital, is the capital financial concept.

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Definitions:

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.

Profitable Projects

Initiatives or plans that are expected to generate earnings exceeding their costs.

Target Capital Structure

The combination of borrowing, ownership stakes, and additional financing methods a business intends to employ for its operational and expansion activities.