Question

Define stock dividends and cash dividends. What is the difference between the two and which type...

Define stock dividends and cash dividends. What is the difference between the two and which type of dividends do you think is best? If you were considering purchasing stock in a company, would either of these practices make a difference in your choice of which stock to purchase?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Cash dividend = a cash dividend is a payment made by the company out of its earnings to the investOrs in the form of cash.

Stock dividend = on the other hand is an increase in the amount of share of company with the new share being given to the shareholder .

Difference between cash dividend and stock dividend.

1) cash dividend when given by the company to the shareholder when the company huge liquidity of cash. Stock dividend when given by the company to the share shareholders short availability of liquidity of cash.

2)cash dividend doesnot increase the value of company. But stock dividend increase the value of company.

Stock dividend i think best it is increase value of company.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are dividends and how are they recorded? What is the primary difference between a cash...
What are dividends and how are they recorded? What is the primary difference between a cash dividend and a stock dividend?
Define type 1error What is the difference between t- Test, and z test
Define type 1error What is the difference between t- Test, and z test
What is the difference between “clearance” and “approval” of a product? Define the two pathways in...
What is the difference between “clearance” and “approval” of a product? Define the two pathways in which these two statuses are issued.
you are required to define sex and gender, as well as state the difference between them....
you are required to define sex and gender, as well as state the difference between them. The question is, "Do you think life would be easier if the construct of gender did not exist at all? State YES, OR NO, AND SUPPORT YOUR ANSWER..
Compare two investments - gold and common stock. Which investment type do you think has more...
Compare two investments - gold and common stock. Which investment type do you think has more risk? Why? Explain your answer. Which would you prefer to own? Why?
What is the difference between ASPE and IFRS for the SCF? Multiple Choice Dividends paid must...
What is the difference between ASPE and IFRS for the SCF? Multiple Choice Dividends paid must be classified as a financing activity. Interest received and paid, and dividends received must be classified in operating activities. There is no choice of alternate classification All of these are differences between ASPE and IFRS for the SCF. Information regarding cash flow for interest, and cash paid for income tax, is accomplished through a disclosure note.
What type of culture would be comparatively ineffective in dealing with change? Which type of culture...
What type of culture would be comparatively ineffective in dealing with change? Which type of culture would be most effective. Explain your answer. Why is it necessary or desirable for employees to understand how and why a company change is taking place? To what extent do you think this best practice is actually followed in the real world? Of the types of organizational cultures discussed in this section, which would you most like to work within? Which would you least...
Cash dividends and two classes of stock. Googelie Inc. has two classes of capital stock outstanding:...
Cash dividends and two classes of stock. Googelie Inc. has two classes of capital stock outstanding: 45,000 shares of 8%, $100 par value cumulative preferred and 25,000 shares of $10 par value common. The company had a deficit (negative balance in retained earnings) of $230,000 at the beginning of the current year, and preferred dividends were two years in arrears. During the current year, the company earned net income of $1,735,000. What will be the balance in the Retained Earnings...
One difference between selling stock and selling bonds is that: Choose one Dividends must be paid...
One difference between selling stock and selling bonds is that: Choose one Dividends must be paid on stock, while payment of interest is optional. A company must use the cash proceeds from bonds to expand operations, while there are no restrictions on cash received from stock. Bonds represent debt, while stock represents ownership. Bonds are typically issued to one investor only, while stock may be issued to many investors.
What is the difference between standard deviation and value at risk? Consider the difference between purchasing...
What is the difference between standard deviation and value at risk? Consider the difference between purchasing a one-year bank CD compared with purchasing a homeowner's insurance policy. Which scenario do you believe is more likely to consider value at risk over standard deviation? Explain.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT