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Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
16 / 4310 |
Essay's paper body
Stock dividend is paid in addition to or instead of cash dividend and simply involves a book keeping transfer from retained earnings to ordinary share capital. Bonus issue is expected to have no effect on shareholders wealth especially in efficient markets but it may have the following disadvantages;
i...
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Bonus issue is expected to have no effect on shareholders wealth especially in efficient markets but it may have the following disadvantages;
i. Tax benefit. If a company declares cash dividend, the shareholders pay tax at source on the dividend paid but the stock dividend will not attract taxes
ii...
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General points of the essay
Dividend Policy
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