Chapter 11, Problem 11.5CP

(1)

To determine

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

To discuss: The factors, which should be considered by the board of directors in deciding whether to declare a cash dividend for the last quarter of 2016

(2)

To determine

To discuss: The issuance of a stock dividend from the point of view of (a) a stockholder and (b) the board of directors.