Stock split, stock dividend,common shares & bonds
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As an investor, would you prefer a stock dividend, cash dividend or stock split? Why? How do each of these impact a company's financial statement? What are some benefits of a stock split for a company? What are some benefits for an investor? Why would a company choose one over the other?
Should an organization issue common stock, preferred stock, or bonds to raise capital? Why? As an investor, how would you prefer to see a company raise capital? Why? As a corporation, would you rather issue preferred or common stock? Why?
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Solution Summary
The solution contains the answers for two questions :1. Meaning of stock dividend, stock split, cash dividend 2. Meaning of common shares, preference share and bonds and also preferable mode of intrument for the company and the investor.
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Dear student,
As an investor, would you prefer a stock dividend, cash dividend or stock split? Why? How do each of these impact a company's financial statement? What are some benefits of a stock split for a company? What are some benefits for an investor? Why would a company choose one over the other?
Should an organization issue common stock, preferred stock, or bonds to raise capital? Why? As an investor, how would you prefer to see a company raise capital? Why? As a corporation, would you rather issue preferred or common stock? Why?
Stock dividend means issue of additional shares to the existing shareholders on the basis of the number of shares held by them out of the net income or retained earnings of the company. Stock dividend is issued at free of cost to the ...
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