Question 37 of 38
Q.Distinguish between the following:
Final dividend and Interim dividend
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2020Subjective· 4mImportance★★★★★
97% · 37/38 Questions
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Start your 14-day free trial to unlock the full solution →Final dividend is declared at the year-end by members at the AGM; interim dividend is declared mid-year by the Board of Directors.
| Point | Final Dividend | Interim Dividend |
|---|---|---|
| Meaning | Dividend declared at the end of the financial year | Dividend declared in between two AGMs |
| Declared by | Shareholders at the AGM, on the Board's recommendation | Board of Directors |
| Time | After the annual accounts are finalised and adopted | During the financial year, before final accounts |
| Source | Paid out of the profits of the completed year | Paid out of the current year's estimated profits |
| Rate | Generally higher | Generally lower, being a part payment |
| Frequency | Usually once a year | May or may not be declared; optional |
| … |
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