If a corporation pays out all of its cash in dividends, it may put itself in a position where it does not have enough cash to pay the loan payments to the bank. Excessive dividends may also be an indication that the management of the corporation does not have good judgment about retaining sufficient capital in the corporation to meet corporate capital needs.

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Are dividend payments by corporations tax deductable to the corporation thanks

no, dividends are not tax deductable to the corporation. dividend payments are deductions to retained earnings. the corporation only withhold taxes for the account of the stockholders to be remitted to the government.

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If a corporation pays out all of its cash in dividends, it may put itself in a position where it does not have enough cash to pay the loan payments to the bank. Excessive dividends may also be an indication that the management of the corporation does not have good judgment about retaining sufficient capital in the corporation to meet corporate capital needs.

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Some says that dividend payment does not matter at all, is it true? or, there are instances when dividend payment is beneficial for the corporation?

Assuming the corp. has issued a class of stock shares that include dividends, first check to see whether the Corp.'s By-Laws covers this issue. If it is at the discretion of the bd. of directors, it would be wiser to issue dividends early in the calendar year so that stockholders can determine how to plan their personal income strategies for their next tax return. Depending on the size of the dividend, issuing a dividend late in the year may be disadvantageous to stockholders who may be put in a position of paying higher taxes due to the inability to acquire sufficient "loses" to set off the dividend gain.

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For acct. class

Yes and also.... Banks at most get the principle of their loan repaid and interest (they are some exceptions to this). Shareholders can have limitless returns. Lenders "reward" is therefore strictly limited whearas the share investor's is not. This is one of the reasons Banks will be extremely interested in being informed - and even better - being able to control dividends . Its a way of ensuring their loans are not helping shareholders gain reward they can have no benefit from. In fraud type scenario's - Banks will also be concerned that ununsual dividend payments could herald the departure of fradulent owners/managers from a company - it acts as a warning signal to watch.

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Some says that dividend payment does not matter at all, is it true? or, there are instances when dividend payment is beneficial for the corporation?

Dividends are paid to those that actually own the company. The stock holders or any other way they have invested their money in hopes of getting a return and profit. Dividends are very important to many people. Many of us would have nothing to live on if we did not get dividends.

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The corporation announces a profit of $6 per share, of which it retains $2 for reinvestment and distributes the rest as dividend payments. given that the personal tax rate is 35%, how much tax must you pay per share?

The tax on dividends is I think still 50% and not the same as personal income. It is always higher than the personal rate. Check with your CPA to be sure.

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Debit capital stock; credit cash debit dividends; credit cash debit cash; credit retained earnings debit cash; credit dividends

i would guess 1st or 3rd one, leaning more towards the 1st. based on nothing- im not an accountant

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Us has a big deficit,why the government of us still work very sound? question 2: does a fixed exchange rate is a kind of manner against market economy? you know the foreign exchange rate are determined by supply and demand,but a fixed exchange rate seems is an intervention from government,but who will decide? for example,a fixed exchange rate between hong kong dollar and us dollar is determined by hong kong government or us government? or both government? question 3: what is institutional environment? question 4: why call dividend? (is there anything you divide it from?) dividend: dividends are payments made by a corporation to its shareholder members. it is the portion of corporate profits paid out to stockholders.[1] when a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. many corporations retain a portion of their earnings and pay the remainder as a dividend. please explain its etymology question 5: what is cookie cutter model in business? question 6: why call due diligence as "due diligence"?(is there something you due or owe which you need to work hard for?) question 7: nasdaq composite is a technology heavy index,i want to know how about dow jones index? and s&p 500? and ftse 100 index?and why people would like to make an index? not directed see the whole stock exchange performance? question 8: what does interest rate increase by federal reserve mean?(i can understand interest rate by a loan or saving,but how about federal reserve?)

Because it's the worlds reserve currency. The US sovereign debt crisis has only been delayed. Wait and see.

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A. dividend payments on shares of that firm's stock. b. financial intermediaries. c. coupon payments on that firm's bonds. d. repayment of the principle on bonds.

a. dividend payments