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When a Firm Enters Stage IV of Its Life Cycle

Question 48

Multiple Choice

When a firm enters Stage IV of its life cycle,


A) dividend payout ratios are likely to rise to a moderate level of 20-30% of earnings.
B) the firm has reached maturity.
C) the organization must retain earnings in preparation for cycling back into Stage I of the life cycle.
D) stock splits are common.

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