Distributions to Shareholders and Capital Structure Decisions
Please respond to the following:
From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company. Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. Provide support for your answer with one (1) real-world example of your preference.
From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFC's dividends should either (1) stay the same; (2) be increased; (3) or go down. Provide a rationale for your response.