Now suppose that Payout again changes its mind and decides to issue a 2 stock dividend instead of either issuing the cash dividend or repurchasing 2 of the outstanding stock How would this action affect a shareholder who owns 100 shares of stock Compare with your answers to problems 8 and 9 ...

A 2 percent stock dividend will have no cash implications The total market value o ...

Now suppose that Payout again changes its mind and decides to issue a 2% stock dividend instead

Question:

Now suppose that Payout again changes its mind and decides to issue a 2% stock instead of either issuing the cash or repurchasing 2% of the outstanding stock. How would this action affect a shareholder who owns 100 shares of stock? Compare with your answers to problems 8 and 9.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...