A company that operates within a country whose legal system and laws relating to dividend policy are strict will tend to? a. Maintain or increase dividend pay-out ratio b. Increase plowback ratio c. Maintain an equal retention and pay-out ratio d. None of the foregoing choices A share split will cause changes in the total balance of which of the following balance sheet account? a. Cash b. Share capital c. Retained Earnings d. None of the choices

A company that operates within a country whose legal system and laws relating to dividend policy are strict will tend to? a. Maintain or increase dividend pay-out ratio b. Increase plowback ratio c. Maintain an equal retention and pay-out ratio d. None of the foregoing choices A share split will cause changes in the total balance of which of the following balance sheet account? a. Cash b. Share capital c. Retained Earnings d. None of the choices

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How a firm splits its income between retained earnings and dividends does not affects its rate of growth, which is determine by the firms basic earning power. True or false ?
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