INTERVIEW QUESTIONS FINANCIAL MANAGEMENT DIVIDEND DECISION DETAILS

Question: State the objects of stock dividend.

Answer: Stock dividend may be issued by a company to serve certain objectives. They are as follows:
1. Conversion of cash
2. Lower rate of dividend
3. Financing expansion programmes
4. Transferring the formal ownership of surplus and reserves to the shareholders
5. Enhanced prestige
6. Widening share market
7. True presentation of earning capacity

Stock dividend may be issued by a company to serve certain objectives. They are as follows:
1. Conversion of cash
2. Lower rate of dividend
3. Financing expansion programmes
4. Transferring the formal ownership of surplus and reserves to the shareholders
5. Enhanced prestige
6. Widening share market
7. True presentation of earning capacity Source: CoolInterview.com

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