Assess the validity of the decision process for distribution policy and dividend policy. Describe all the factors which influence this decision process in problem. From the e-Activity, contrast the differences between a stock dividend and a stock split. Assume that you are a stockholder in a company. Find out whether you would prefer to see the company that you researched declare a 100% stock dividend or declare a 2-for-1 split. Give support for your answer with one (1) real-world illustration of your preference.
Propose three factors which managers should consider when making capital structure decisions. Provide a rationale for your response. From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFC's dividends should either (a) stay the same; (b) be increased; (c) or go down.