Which THREE of the following would be considered disadvantages of a scrip dividend compared to a zero dividend?

The Board of Directors of a listed company have decided that it needs to increase its equity capital to ensure it is in a more stable financial position.

The shareholder profile is a mix of institutional and individual small shareholders.

The board is considering either:

• A scrip dividend

• A zero dividend

Which THREE of the following would be considered disadvantages of a scrip dividend compared to a zero dividend?
A . A scrip dividend results in distributable reserves being moved to non-distributable reserves.
B . A scrip dividend will dilute the control of current shareholders.
C . A scrip dividend results in more shares in issue which will create an expectation for future dividends.
D . There will be company secretarial and additional administration involved with a scrip dividend.
E . A scrip issue may give shareholders the impression that they are receiving something of value.