1. Many firms operate at a dividend payout ratio of less than 50%. Why do firms not pay a larger percentage of income as dividends? 2. What is a stock dividend? How should it be recorded? 3. What is...

1. Many firms operate at a dividend payout ratio of less than 50%. Why do firms not pay a larger percentage of income as dividends?

2. What is a stock dividend? How should it be recorded?

3. What is the difference between stock dividends and stock splits? How should stock splits be recorded?