INTERVIEW QUESTIONS FINANCIAL MANAGEMENT DIVIDEND DECISION DETAILS

Question: What is scrip dividends?

Answer: In this method of dividend, the shareholders are issued transferable promissory notes which may or may not be interest bearing. Scrip dividends are justified only when the company has really earned profit and has only to wait for the conversion of other current assets into cash in the course of operations.

In this method of dividend, the shareholders are issued transferable promissory notes which may or may not be interest bearing. Scrip dividends are justified only when the company has really earned profit and has only to wait for the conversion of other current assets into cash in the course of operations. Source: CoolInterview.com

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