Explore BrainMass
Share

Cash dividends or stock dividends

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The board of directors of Akin & Gump, Inc., investment bankers is meeting to address the concerns of stockholders. Stockholders have submitted the following questions for discussion at the board meeting. Answer each question.

1. Why did Akin & Gump organize as a corporation if a corporation must pay an additional layer of income tax?

2. How is preferred stock similar to common stock? How is preferred stock similar to debit?

3. Akin & Gump purchase treasury stock for $50,000 and a year later sold it for $65,000. Explain to the stockholders why the $15,000 excess is not profit to be reported to be reported on the company's income statement.

4. Would our investors prefer to receive cash dividends or stock dividends? Explain your reasoning.

© BrainMass Inc. brainmass.com October 24, 2018, 7:30 pm ad1c9bdddf
https://brainmass.com/business/dividends-stock-repurchase-and-policy/cash-dividends-stock-dividends-69917

Solution Preview

he board of directors of Akin & Gump, Inc., investment bankers is meeting to address the concerns of stockholders. Stockholders have submitted the following questions for discussion at the board ...

Solution Summary

This explains the difference between cash dividends or stock dividends

$2.19
See Also This Related BrainMass Solution

Regular cash dividend, periodic share repurchase...

Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain.
Explain a stock dividend and further explain if you would prefer it to a cash dividend.
What are stock splits and how desirable are they?

View Full Posting Details