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the board of sherlock industries is discussing whether to issue a cash dividend or a stock dividend. Director M argues, Issuing a cash dividend will
the board of sherlock industries is discussing whether to issue a cash dividend or a stock dividend. Director M argues, "Issuing a cash dividend will enhance our liquidity ratios and gasin approval from credit rating agencies". In constract, Director X claims "A stock dividend will strengthen our leverage ratios by boosting contributed capital, which is what credit rating agencies prioritizes"? Are the statements made by M and X correct?
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