The following listed businesses have different policies concerning distributions to shareholders North Ltd pays all profits available for distribution to shareholders in the form of a cash dividend each year South Ltd has yet to pay any cash dividends to shareholders and has no plans to make divide...

North A high dividend distribution means Cash is made available for investors to meet living expense ...

The following listed businesses have different policies concerning distributions to shareholders: North Ltd. pays all profits

Question:

The following listed businesses have different policies concerning distributions to shareholders:
• North Ltd. pays all profits available for to shareholders in the form of a cash each year.
• South Ltd. has yet to pay any cash dividends to shareholders and has no plans to make payments in the foreseeable future.
• West Ltd. repurchases shares from shareholders as an alternative to a payment.
• East Ltd. offers shareholders the choice of either a small but stable cash or a stock each year.
Required:
Discuss the advantages and disadvantages of each of the above policies.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...