6. What can be said of the policy of borrowing to pay dividends?
7. What is the problem involved in stock dividends in estate accounting?
8. How are the declaration and payment of dividends booked?
9. What is the relation of capital losses to dividends:
- (a) From a legal standpoint.
- (b) From a business standpoint.
10. What are liquidating dividends? How are such dividends handled as related to wasting assets?
Chapter XXV
1. Define a sinking fund and trace its origin.
2. State the problem of the calculation of a sinking fund. Derive the formula.
3. What other basis than the compound interest basis is often used for the accumulation of a sinking fund?