Which one of the following situations is most apt to result in a special dividen

Question

Which one of the following situations is most apt to result in a special dividend payment? Answer
a. Northern Electric is planning to increase its quarterly dividend by two percent.
b. Gibson Toys was fortunate this year in that it developed a new toy that broke all previous toy sale records. The profits from this toy were phenomenal but the company realizes that the odds of this type of luck reoccurring are slight, at best.
c. Gulf Port Marina recently sold its facility and is closing down the company.
d. San Francisco Tours currently has excess cash that it wishes to distribute to its shareholders. This occurs every so often and when it does, the firm prefers to pass the extra cash along to its shareholders.
e. F&D Florists is preparing to pay its first annual dividend of $.20 a share. Which one of the following situations is most apt to result in a special dividend payment? Northern Electric is planning to increase its quarterly dividend by two percent. Gibson Toys was fortunate this year in that it developed a new toy that broke all previous toy sale records. The profits from this toy were phenomenal but the company realizes that the odds of this type of luck reoccurring are slight, at best. Gulf Port Marina recently sold its facility and is closing down the company. San Francisco Tours currently has excess cash that it wishes to distribute to its shareholders. This occurs every so often and when it does, the firm prefers to pass the extra cash along to its shareholders. F&D Florists is preparing to pay its first annual dividend of $.20 a share.
a. Northern Electric is planning to increase its quarterly dividend by two percent.
b. Gibson Toys was fortunate this year in that it developed a new toy that broke all previous toy sale records. The profits from this toy were phenomenal but the company realizes that the odds of this type of luck reoccurring are slight, at best.
c. Gulf Port Marina recently sold its facility and is closing down the company.
d. San Francisco Tours currently has excess cash that it wishes to distribute to its shareholders. This occurs every so often and when it does, the firm prefers to pass the extra cash along to its shareholders.
e. F&D Florists is preparing to pay its first annual dividend of $.20 a share.

Explanation / Answer

Gulf Port Marina recently sold its facility and is closing down the company. special dividends are declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders. Special dividends can also occur when a company wishes to make changes to its financial structure or to spin off a subsidiary company to its shareholders c. Gulf Port Marina recently sold its facility and is closing down the company. special dividends are declared after exceptionally strong company earnings results as a way to distribute the profits directly to shareholders. Special dividends can also occur when a company wishes to make changes to its financial structure or to spin off a subsidiary company to its shareholders

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