Perspective of the stockholder


There are various types of dividends; however, the two most common dividends have to do with either a cash dividend or a stock dividend. With a cash dividend the shareholder receives cash, based on the number of shares that is owned. In a stock dividend the shareholder receives stock certificates, based on the number of shares owned. From the perspective of the stockholder, which dividend would do you think they would prefer and from the perspective of the company, which dividend do you think they would prefer. Please fully explain your answer, giving reasons as to why.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Perspective of the stockholder
Reference No:- TGS050707

Expected delivery within 24 Hours