BYP11-10 Greenwood Corporation has paid 60 consecutive quarterly cash dividends

(15 years). The last 6 months have been a real cash drain on the company, however, as

profit margins have been greatly narrowed by increasing competition. With a cash balance

sufficient to meet only day-to-day operating needs, the president, Gil Mailor, has decided

that a stock dividend instead of a cash dividend should be declared. He tells Greenwood