Question: In some countries, such as Australia, it is common for corporations to offer shareholder a dividend investment scheme. (a) Discuss the advantages of a dividend

In some countries, such as Australia, it is common for corporations to offer shareholder a dividend investment scheme.

(a) Discuss the advantages of a dividend reinvestment plan from the point of view of the corporation and the shareholders.

(b) Under what circumstances might such schemes prove to be unattractive to the dividend paying company.

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