a Coral Sea Yachting Pty Ltd declares a dividend of 10 cents ($0.10) per share on all ordinary shareholding at their Annual General Meeting (AGM) on 3 June 2020. The Chief Financial Officer (CFO) has strongly recommended that the dividend be taken as a 'Share Dividend' and not a 'Cash Dividend'. Coral Sea Yachting Pty Ltd has 100,000 ordinary shares recorded in its share register. There are three (3) shareholders. John Cook is the major shareholder owning 60% of the total shares (60,000 shares). Fred Drake owns 25% (25,000 shares) and Harry Nelson owns the remaining 15% (15,000 shares). Required: As the Chief Financial Officer (CFO), discuss the merits of both a Share Dividend and a Cash Dividend to the Board of Coral Sea Yachting Pty Ltd in terms of their impact on the financial reports and any other documentation held by the company. TOTAL MARKS: 5 marks Edit View Insert Format Tools Table