Distributions to Shareholders and Capital Structure Decisions (FIN 534 DQ8)
Distributions to Shareholders and Capital Structure Decisions? Please respond to the following: Part A: * Use the Internet to research a company that declared a 100% stock dividend or a 2-for-1 split. 1. contrast the differences between a stock dividend and a stock split. * Imagine that you are a stockholder in a company. 2. Determine whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. 3. Provide support for your answer with one (1) real-world example of your preference. Part B: * From the scenario (see attachment), examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. 1. Suggest whether TFC’s dividends should either (1) stay the same; (2) be increased; (3) or go down. 2. Provide a rationale for your response.