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Commerce · Q488

Business Finance

Graduate and Post Graduate · Commerce · question 488

Q488

Sometimes, the investors would prefer to pay a stock dividend rather than a regular cash dividend. Which of the following statements are true in such kinds of decisions?

A.
They do not provide liquidity to the investors
B.
They do ensure capital gains to the stockholders
C.
If investors are not interested in a long-term investment, they will prefer regular cash payments over payments of additional stock
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
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