Why would a company choose to have a low dividend payout ratio? A.The company has many investment opportunities with high growth potential B.The company has few investment opportunities and they have low growth potential C.The company has very low profits D.The company has very high profits E.The board of directors has decided to do so.
Why would a company choose to have a low dividend payout ratio? A.The company has many investment opportunities with high growth potential B.The company has few investment opportunities and they have low growth potential C.The company has very low profits D.The company has very high profits E.The board of directors has decided to do so.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 17MC: What would be a reason a company would want to understate income? A. to help nudge its stock price...
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Question
Why would a company choose to have a low dividend payout ratio?
A.The company has many investment opportunities with high growth potential
B.The company has few investment opportunities and they have low growth potential
C.The company has very low profits
D.The company has very high profits
E.The board of directors has decided to do so.
B,C only
A,C,Eonly
B,D,Eonly
B,C,Eonly
A, C, Donly
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