I’m working on a Accounting discussion question and need a sample draft to help me study.
The Board of Directors of the Reliable Corporation is discussing on declaring a dividend to its shareholders. However, corporation does not have lots of cash available, but the Board of Directors strongly believe that they need to find a way to declare some sort of dividend.
Provide details of the various types of dividends that the Board of Directors can issue. Since the corporation does not have enough cash, should it borrow cash to satisfy the issuance of a certain type of dividend? Give a well-reasoned and detailed argument of which type of dividend should the corporation declare. And why? Provide any additional details that would solidify your point of view(s).
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