Please post at least a three paragraph reply to the following ethical dilemma. Also reply to the posts of at least two fellow students. Each of your replies should be at least a paragraph long.

Intercontinental Clothing Distributors has paid cash dividends every year since the company was founded in $1990.$ The dividends have steadily increased from $$0\mathrm{.}05$ per share to the latest dividend declaration of $$1\mathrm{.}00$ per share. The board of directors is eager to continue this trend despite the fact that earnings fell significantly during the recent quarter. The chair of the board proposes a solution. He suggests a $5\%$ stock dividend in lieu of a cash dividend, to be accompanied by the following press announcement: $$In place of our regular $$1\mathrm{.}00$ per share cash dividend, Intercontinental will distribute a $5\%$ stock dividend on its common shares, currently trading at $$20$ per share. Changing the form of the dividend will permit the company to direct available cash resources to the modernization of facilities and other capital improvements.

Is a $5\%$ stock dividend on shares trading at $$20$ per share equivalent to a $$1\mathrm{.}00$ per share cash dividend? Is the chair$$s suggestion ethical?