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.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 41MCQ
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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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