How to calculate retained earnings: Formula & example
Let’s say that in March, business continues roaring along, and you make another $10,000 in profit. Since you’re thinking of keeping that money for reinvestment in the business, you forego a cash dividend and decide to issue a 5% stock dividend instead. First, you have to figure out the fair market value (FMV) of the shares you’re https://adprun.net/new-business-accounting-checklist-for-startups/ distributing. Companies will also usually issue a percentage of all their stock as a dividend (i.e. a 5% stock dividend...