What is a scrip dividend?
A) A method by which the company can raise the level of borrowings on its balance sheet
B) A mechanism by which the company buys a proportion of its own shares from investors
C) An opportunity for the company to increase dividends without sending a signal that leads to a fall in the share price
D) An opportunity for shareholders to receive additional shares in proportion to their existing holding instead of the normal cash dividend
Correct Answer:
Verified
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