Companies often offer their shareholders a cash dividend and an equivalent scrip dividend. Briefly consider the advantages
Question:
Companies often offer their shareholders a cash dividend and an equivalent scrip dividend. Briefly consider the advantages of scrip dividends from the point of view of:
(a) The company;
(b) The shareholders.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 16% (6 reviews)
Scrip dividends also known as dividend reinvestment plans DRIPs allow shareholders to receive additional shares in the company instead of cash dividends Here are the advantages of scrip dividends from ...View the full answer
Answered By
Allan Simiyu
I am an adroit Writer. I am a dedicated writer having worked as a writer for 3 years now. With this, I am sure to ace in the field by helping students break down abstract concepts into simpler ideas.
5.00+
8+ Reviews
54+ Question Solved
Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Question Posted:
Students also viewed these Business questions
-
For the given block diagram, find the transfer function using block reduction technique. showing all the steps R(s) GG H H H3 G G3 Gs "Y(s) Act
-
Consider the figure. Each green rectangle has an area of________ . Therefore, the total area in green is represented by the polynomial__________. a b b
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Which of the following divisions of plants does NOT have a well differentiated body? A) Gymnosperms B) Bryophyta C) Thallophyta D) Pteridophyta
-
What is bankruptcy? What are the most common types of bankruptcy?
-
Cavenish Farms owns a potato processing facility. Mathiason Farms and Valley View Farms ("the Growers") are in the business of raising potatoes. In 2005, Cavenish and the Growers entered into...
-
The consolidated financial statements of General Electric Company (GE) combine the industrial manufacturing and services businesses of GE with the financial services businesses of General Electric...
-
A flood recently destroyed many of the financial records of Yak Manufacturing Company. Management has hired you to re-create as much financial information as possible for the month of July. You are...
-
Which term describes the situation where the quantity supplied exceeds the quantity demanded at a given price? A ) Shortage B ) Surplus C ) Equilibrium D ) Elasticity
-
Outline the advantages and disadvantages that should be considered by a currently unquoted company which is considering obtaining a listing on a stock exchange.
-
Briefly explain the various ways in which a company may obtain a listing for its ordinary shares on the London Stock Exchange.
-
True or false: Reordering the original basis before starting the GramSchmidt process leads to the same orthogonal basis.
-
MUNOZ COMPANY Balance sheet Assets Cash $ 14,800 Marketable securities 7,860 Accounts receivable Inventory Property and equipment Accumulated depreciation Total assets Liabilities and Stockholders'...
-
How can organizations proactively address the ethical and moral dilemmas inherent in the pursuit of organizational development initiatives, balancing the imperative for growth and profitability with...
-
Marigold Corporation had 8 6 0 0 0 0 shares of common stock outstanding during the year. Marigold declared and paid cash dividends of $ 4 7 3 0 0 0 on the common stock and $ 3 3 0 0 0 0 on the...
-
At the end of 2 0 X 9 , SpendCo has accounts receivable of $ 7 0 , 0 0 0 , of which it estimates 1 0 % will be bad debt. Allowance for Doubtful Accounts has a debit balance of $ 4 , 0 0 0 . A ) What...
-
How Complex Systems Fail Did you look at the video presentation by Steven Spear? What is a complex system? Are large organizations complex systems? What were the key lessons learnt by the author in...
-
Use the information for Jenny Corporation in E18-9, and assume that the company reports accounting income of $155,000 in each of 2012 and 2013, and that there is no reversing difference other than...
-
Ask students to outline the reasons why the various elements of culture (social structures and control systems, language and aesthetics, religion and other belief systems, educational systems, etc.)...
-
Consider a project with a required return of R percent that costs $ I and will last for N years. The project uses straight-line depreciation to zero over the N-year life; there are neither salvage...
-
The Cornchopper Company is considering the purchase of a new harvester. Cornchopper has hired you to determine the break-even purchase price in terms of present value of the harvester. This...
-
The historical asset class returns presented in the chapter are not adjusted for inflation. What would happen to the estimated risk premium if we did account for inflation? The returns are also not...
-
Please no CHATGPT or AI . Seacrest Corporation is a privately - owned chemical company, that is expected to generate a return on equity of 2 0 % next period and is in stable growth, growing 4 % a...
-
Florence's Floral Designs has the following general ledger account balances as of August Purchases $ 62,711 Frreight in 4,300 Purchases returns and allowances 1,150 02:00:01 Purchases discounts 950...
-
A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $ 1 6 , 8 0 0 each, with the first payment occurring today on your child s 1 2 th...
Study smarter with the SolutionInn App