MODE OF PAYING DIVIDENDS BY FIRMS 1.CASH AND BONUS ISSUE .firm pays cash dividends when they have adequate liquid funds.shareholders are given cash based on their shareholding percentage.Bonus issue involves issue of additional share for free instead of receiving cash to excisting shareholders in there shareholding proportion. 2.STOCK REPURCHASE. Company buys back some of its outstanding shares instead of paying cash dividends.if some outstanding shares were repurchased, fewer shares would remain outstanding. This would result in increase in market price per share. So that capital gains are substituted for dividends 3.STOCKS SPLIT AND REVERSE SPLIT. This is where a block of shares is broken down into smaller units so that the number of ordinary shares increases and their respective par value decreases at the stock split factor. Stock split is meant to make the shares of the company more affordable by low-income investors and increase their liquidity in the market