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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

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