· Definition. Discuss the advantages and disadvantages of paying dividends to investors and corporations. What is necessary for a corporation to pay a dividend? · Identify and discuss a corporation...

Advantage of paying dividend to the investors are as under:
1. Dividend can be used by the investors to buy more stocks since it is an actual cash in the bank account of the investors.
Disadvantage of paying dividend to the investors are as under:
1. The dividend received by an investor is taxable in the hands of the investor. Hence the actual cash flow in the hands of the investor is less.
Advantage of paying dividend to the Corporations are as under:
1. Corporations which pays a regular amount of dividend to the shareholders have...