The motive to pay stock dividend to retain cash to satisfy past-due bills, may result in a decline in market value.

Name: The motive to pay stock dividend to retain cash to satisfy past-due bills, may result in a decline in market value.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

When a company pays stock dividends instead of paying off past-due bills, it may signal financial instability, leading investors to sell their stocks and causing a decline in market value.

The Motive to Pay Stock Dividend to Retain Cash to Satisfy