Does the offer of receiving cash dividend and stock repurchase make any differences to an individual shareholder of the company? Why? (Assume that the company will spend same amount of money on either alternative.)

Does the offer of receiving cash dividend and stock repurchase make any differences to an individual shareholder of the company? Why? (Assume that the company will spend same amount of money on either alternative.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

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Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
How does the accounting for a liquidating dividend differ from that for a normal cash dividend?
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