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Out of the choices of cash dividend, stock dividend, stock repurchase, and interest payment, which are...

Out of the choices of cash dividend, stock dividend, stock repurchase, and interest payment, which are the payout policies to pay cash out to shareholders?

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Answer #1

Cash Dividend is dividend which is transferred as cash to shareholders. This cash is paid from the net income of the company after which retained earnings are calculated..
In stock dividend extra dividends are paid out to existing investors in ratio of their ratio of shares they hold.It is not a cash payment to shareholders.
In Stock repurchase companies pay the market value of shares to shareholders . Hence it is a cash payout to shareholders.
Interest payment is cash payment to bond holders and not shareholders.

Hence cash dividend and stock repurchase policies payout cash to shareholders.

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