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Kroger limited pays out cash dividends every year for the

Question - Kroger Limited pays out cash dividends every year for the past 10 years. Kroger is barely able to meet day by day cash demands and unable to pay cash dividends this year so is contemplating issuing a stock dividend instead. Kroger issues a press release stating that a stock dividend is just the same as a cash dividend.

What is incorrect about this statement and how will it affect shareholders?

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Accounting Basics: Kroger limited pays out cash dividends every year for the

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