Answered step by step
Verified Expert Solution
Question
1 Approved Answer
While you were talking about investments with one of your co workers, she made the following statement: Select the most appropriate response. The co-worker is
While you were talking about investments with one of your co workers, she made the following statement: Select the most appropriate response. The co-worker is correct. Stock dividends are taxable and do not actually pay out cash, so investors will have to pay the tax on these dividends. This is unfavourable to the investor so stock dividends are typically viewed as unfavourable in the The co-worker is incorrect. Investors are always better off when receiving a stock dividend. After a stor k dividend is BE The coworker would only be correct if the market adjusted perfectly after the stock dividend was declared to this case, the value of each share would reflect the new number of shares issued. Stock dividends are generally viewed unfavourably in the market, since no eash has been paid out by the company, Investors want cash returns on their investments, so stock The co-worker would only be correct if the market adjusted perfectly after the stock dividend was declared. In this case, the value of each share woul
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started