Suvarna Garge (Editor)

Divisible profit

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Profit or a portion of profit that can be legally distributed as a dividend to the shareholders is known as Divisible Profit. All profit of the company is not divisible and number of factors should be considered while determining divisible profit of the company.

Factors influencing the value of Divisible Profit

Following are some factors that influence the value of divisible profit.

  • Transfer to and Creation of reserve
  • Creation of Dividend Equilization Reserve
  • Working Capital Requirement of the company
  • Dividend on Preference Share
  • Past Dividend Payout History
  • References

    Divisible profit Wikipedia


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