A cash budget gives the financial manager a clear view of the timing of a firm's expected profitability over a given period.
Indicate whether the statement is true or false
Question 2
A dividend payable in stock (a stock dividend)
A)
is better than a cash dividend because you receive more shares of stock.
B)
is usually associated with a company in bankruptcy.
C)
has little impact on your net worth; although you receive additional shares, the market value of each share you own decreases.
D)
allows you to exchange shares of common stock for shares of preferred stock.
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