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Dividends are an important part of Corporate Finance. They are a massive expense/debt that corporations continuously...

Dividends are an important part of Corporate Finance. They are a massive expense/debt that corporations continuously have to pay. Why do some have a dividend and some do not?

As an employee, do you prefer to work for a corporation that pays a dividend or does not? Explain.

As an investor, do you prefer one or not? Explain

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Answer #1

Dividend is the profit of the company that some company distributes to their shareholders.whereas some companies do not distribute dividends.actually dividend distribution does not effect the employees of the company.if company does not distribute dividend then it will get added to its reserves which will improve the value of share and when company distributes it then it not effects the value of share in long run.the employees working in a company do not have any relation with the function of distribution of dividend by company.

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