Question 1 lew Policies Current Attempt in Progress Molina Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months, however, have been a cash drain on the company, 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, Rob Lowery, has decided that a stock dividend instead of a cash dividend should be declared. He tells Molina's financial vice president, Debbie Oler, to issue a press release stating that the company is extending its consecutive dividend record with the issuance of a 5% stock dividend. "Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend," he orders. "Just watch our stock rise when we announce the stock dividend. It must be a good thing if that happens." Who are the stakeholders in this situation? BUT TIE . E 99 4 O Words eTextbook and Media MacBook Air $ 4 3 6 7 8 9 0 daila E R T Y U O P D F . K V B N. 3 90 Question 1 lew Policies Current Attempt in Progress Molina Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months, however, have been a cash drain on the company, 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, Rob Lowery, has decided that a stock dividend instead of a cash dividend should be declared. He tells Molina's financial vice president, Debbie Oler, to issue a press release stating that the company is extending its consecutive dividend record with the issuance of a 5% stock dividend. "Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend," he orders. "Just watch our stock rise when we announce the stock dividend. It must be a good thing if that happens." Who are the stakeholders in this situation? BUT TIE . E 99 4 O Words eTextbook and Media MacBook Air $ 4 3 6 7 8 9 0 daila E R T Y U O P D F . K V B N. 3 90