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

A. dividends

Step-by-step explanation:

Dividends is the sum of money paid out to a company's shareholders.

Stock payment is when a company pays its shareholders with stocks.

Share repurchase is when a company buys back its stocks from its shareholders.

Stock splits is when the amount of shares with shareholders is increased in a defined manner e.g. 2 for 1 stock split.

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