Description
What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why?
Explanation & Answer
There are cash dividends and stock dividends, a corporation usually pays dividends to try to return its wealth back to the shareholders of a company. In my opinion I would prefer the stock dividend because it increases the amount of shares but it does not increase the value of the company just like cash dividends do. The real benefit of the stock dividend is by choice. The shareholder can keep the share or sell the shares in hopes of creating their own cash dividend depending on the situation.
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
Treasure Island
by Robert Louis
Shutter Island
by Dennis Lehane
The Tipping Point
by Malcolm Gladwell
The Good Earth
by Pearl S. Buck
One Flew Over the Cuckoos Nest
by Ken Kesey
The Point of it All - A Lifetime of Great Loves and Endeavors
by Charles Krauthammer
Too Much and Never Enough
by Mary L. Trump
The Glass Palace
by Amitav Ghosh
Dandelion Wine
by Ray Bradbury