Which Three of the Following Correctly Apply to a Scrip

question 24

Multiple Choice

Which three of the following correctly apply to a scrip dividend?

• A) It gives shareholders an opportunity to receive additional shares in proportion to their existing holding instead of the normal cash dividend.
• B) The company benefits because cash does not leave the company.
• C) Shareholders receive the scrip dividend in addition to the cash dividend.
• D) They are particularly useful for companies going through difficult trading periods.