CIMA Exam CIMAPRA19-F03-1 Topic 5 Question 55 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 55
Topic #: 5

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

Although the company has excellent long-term growthprospects, 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?

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

BIt is a way of increasing earnings per share.

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

DIt is a way of increasing dividend per share.

Show Suggested Answer

Suggested Answer: C

by Quentin at Aug 03, 2022, 03:59 AM

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