Match the following.

List-I (Forms of Dividend Payment) List-II (Features)

a. Cash dividend 1. The fair value of the additional shares issued is based on their fair market value when the dividend is declared

b. Stock dividend 2. On the date of payment, the company issues dividend payments

c. Property dividend 3. It creates a note payable

d. Scrip dividend 4. You record this distribution at the fair market value of the assets distributed

A) a-4, b-3, c-1, d-2 B) a-2, b-1, c-4, d-3 C) a-2, b-3, c-4, d-1 D) a-3, b-2, c-4, d-1

Answer & Solution

Correct Answer: Option B

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List-I	List-II
a. Modigliani Miller approach	1. Commercial papers
b. Net operating income approach	2. Working capital management
c. Short-term money market instrument	3. Capital structure
d. Factoring	4. Arbitrage

List-I (Forms of Dividend Payment)	List-II (Features)
a. Cash dividend	1. The fair value of the additional shares issued is based on their fair market value when the dividend is declared
b. Stock dividend	2. On the date of payment, the company issues dividend payments
c. Property dividend	3. It creates a note payable
d. Scrip dividend	4. You record this distribution at the fair market value of the assets distributed