Cost of capital or Dividend is not one type but there are lots of types of dividend and as a commerce student, you should know all these types of dividend because when you will do the professional accounting work in corporate sector, you will certainly responsible to calculate dividend, its provision and at that time all these fundamentals of corporate accounting will be helpful for you for doing your practical accounting work.
So, study following Types of Dividend in detail :
1. Interim Dividend
Dividend which is given between two annual general meeting before declaring final result of company.
2. Proposed Dividend
Total amount of dividend which is offered to existing shareholders of company.
3. Final Dividend
Final dividend is given after declaring the final result of company in the form of financial statements. Final and proposed dividend will same if interim dividend is given in trial balance and final dividend is given outside of trial balance.
4. Unclaimed Dividend
Unclaimed dividend is that dividend which declared by not claimed by a specific shareholder. Suppose, information of dividend was sent but letter was returned to company due to any reason.
It will be shown in liability side till payment of dividend will not received by shareholder.
5. Liquid Dividend
Liquid dividend is that dividend whose payment is issued in cash or check or depositing in the account of shareholder.
6. Stock Dividend
If payment of dividend is made in the form of issuing new shares to existing shareholders.
7. Dividend in Asset Form
If company is unable to pay dividend in cash or share form, company can pay dividend by giving any his asset as gift form. Then, this type of dividend will be asset form dividend.