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There are various types of dividends; however, the two most common dividends have to do with either a cash dividend or a stock dividend.

There are various types of dividends; however, the two most common dividends have to do with either a cash dividend or a stock dividend. With a cash dividend the shareholder receives cash, based on the number of shares that is owned. In a stock dividend the shareholder receives stock certificates, based on the number of shares owned. From the perspective of the stockholder, which dividend would do you think they would prefer and from the perspective of the company, which dividend do you think they would prefer. Please fully explain your answer, giving reasons as to why.

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SOLUTION:
Types of Dividends
Corporations issue two types of dividend
1. Cash Dividend
2. Stock Dividend
Cash Dividend
Dividend which is paid in cash is called Cash Dividends. For paying dividend,...

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