Asked by
Distika Simkhada
on Nov 15, 2024Verified
A corporation may issue a stock dividend for which of the following reasons?
A) May want to increase permanent capital in the business
B) May want to decrease market value
C) May be short of cash and unable to pay a cash dividend
D) All of the above are correct.
Permanent Capital
The portion of a company's capital that is not expected to be paid back or withdrawn within a year, including equity and long-term debt.
Market Value
Market value is the current price at which an asset or service can be bought or sold in a marketplace.
- Understand the reasons behind issuing stock dividends.
Verified Answer
HT
Learning Objectives
- Understand the reasons behind issuing stock dividends.