Question

Assertions equity shareholders return consist of two components that is divident and capital gain.

reason. divident decision is concerned with taking decisions with regards to the net profit distribution which is related either to pay divident to shareholders or to retain in business​

Answer 1

Equity shareholders' return consists of dividend and capital gain. Dividend is the direct payment to shareholders from a firm's profit, while capital gain is the increase in the value of an asset between purchase and sale.

Step-by-step explanation:

Equity shareholders' return consists of two components: dividend and capital gain.

The dividend decision is concerned with deciding whether to distribute the net profit to shareholders as dividends or to retain it in the business. A dividend is a direct payment from a firm to its shareholders, which is a portion of its profit.

On the other hand, capital gain refers to the increase in the value of a stock, or any asset, between when it is bought and when it is sold. When an investor buys a share of stock and later sells it at a higher price, the difference between the purchase price and the sale price is the capital gain.