Home › Finance Formulas › Annual Growth Rate Formula › Time Value Money Annual Growth Rate Formula Economics Climate Change Ing Curves Percentage Increase Calculator Cagr Calc Population Economic Calculate Over Meaning Define Stands

Finance Formulas / July 19, 2018 / Alia Marquez

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.[1] When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders. Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase.

Instead of calculating interest on a finite number of periods, such as yearly or monthly, continuous compounding calculates interest assuming constant compounding over an infinite number of periods. Even with very large investment amounts, the difference in the total interest earned through continuous compounding is not very high when compared to traditional compounding periods.

84 out of 100 based on 861 user ratings

We Also Think Youâ€™ll Like

Knowingpains

Category

© 2018 Knowingpains. All rights reserved