Discussion Post: Investments
• What are the advantages associated with dividend reinvestment plans?
• How do stock dividends differ from cash dividends? How do stock dividends differ from stock splits?
• If a preferred stock is in arrearage, what does that imply about the dividend payment?
• What does the statement of cash flows add to the analyst's knowledge of the firm?
o 10 percent stock dividend ( fair market value of stock is $ 13 per share) pay out 10% of 1,000,000 shares= # shares
o FMV=$13
o A cash dividend of $ 1 per share will pay out $1 to every share holder. Cash is now $19,000,000 retained earnings is now $97,500,00
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.