Mirembe is interested in receiving income to help save money for her grandson's college education. She is considering investing in the stock of a fast-growing technology company that is promising a rather high dividend rate to shareholders. One thing it will be helpful for Mirembe to remember is

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23-03-2020
Business

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Mirembe is interested in receiving income to help save money for her grandson's college education. She is considering investing in the stock of a fast-growing technology company that is promising a rather high dividend rate to shareholders. One thing it will be helpful for Mirembe to remember is

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keziasynergy keziasynergy · Answer 1 · 2020-03-29T09:42:39+02:00

One thing it will be helpful for Mirembe to remember is the company does not have a legal obligation to pay dividends when promised.

Explanation:

The sum of the amount that is being distributed by an organization to its shareholders from the profits refers to the term called the dividend. The tax deduction will not be received by the organization for the payment of the dividend. The amount of dividend that is to be paid to a shareholder is dependent on the shares that are held by a person.

The dividend will be paid to all the shareholders. In the given example, Mirembe considers investing her money in the stock of a fast-growing technology company that pays her high rate of dividend. One thing it will be helpful for Mirembe to remember is the company does not have a legal obligation to pay dividends when promised.