On March 15, the board of directors of Richmond declared a cash dividend of $1 per share on the date of record for 4,000 shares of stock issued. What type of dividend is this?
Understand the Problem
The question is asking to determine the type of dividend declared on a specific date for stock issued in relation to a company. It requires understanding the context of dividends and the classification of stock types.
Answer
Cash dividend
The final answer is a cash dividend.
Answer for screen readers
The final answer is a cash dividend.
More Information
A cash dividend is typically paid out to shareholders from a company's retained earnings, reducing the amount of profits available for future use.
Tips
Ensure to note the type of dividend provided as cash, as it directly affects the company's cash and retained earnings accounts.
Sources
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