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A company has offered its shareholders the option to take a scrip dividend as an alternative to a cash dividend. What are the implications of
A company has offered its shareholders the option to take a scrip dividend as an
alternative to a cash dividend. What are the implications of accepting this option?
A A scrip dividend is identical to a share repurchase.
B Accepting the scrip dividend will reduce the shareholders wealth.
C Shareholders can avoid tax by accepting the scrip dividend.
D The share price will be affected by the numbers who accept the scrip.
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