Question: Please answer these conceptual questions. What is the difference between a residual dividend policy and a compromise dividend policy? What are stock dividends, and how

Please answer these conceptual questions.

  1. What is the difference between a residual dividend policy and a compromise dividend policy?
  2. What are stock dividends, and how do they differ from cash dividends?
  3. How are share repurchases an alternative to dividends, and why might investors prefer them?

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