Company W is a quoted company. Company W 's Board has offered shareholders a scrip dividend as an alternative to a cash dividend. Explain how Company W 's shareholders should decide whether to accept the scrip as an alternative to cash.

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter14: Distributions To Shareholders: Dividend And Share Repurchases
Section: Chapter Questions
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Company W is a quoted company. Company W 's Board has offered shareholders a scrip dividend as an alternative to a cash dividend.

Explain how Company W 's shareholders should decide whether to accept the scrip as an alternative to cash.

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