CIMA Financial Strategy F3 Question # 85 Topic 9 Discussion

CIMA Financial Strategy F3 Question # 85 Topic 9 Discussion

F3 Exam Topic 9 Question 85 Discussion:
Question #: 85
Topic #: 9

A company is deciding whether to offer a scrip dividend or a cash dividend to its shareholders. 

Although the company has excellent long-term growth prospects, it is experiencing short-term profit and cash flow problems.

 

Which of the following statements is most likely to be a reason for choosing the scrip dividend?


A.

It is a way of raising additional finance to promote future growth.


B.

It is a way of increasing earnings per share.


C.

It is a way of encouraging shareholders to allow cash to be retained in the business.


D.

It is a way of increasing dividend per share.


Get Premium F3 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.