Multiple Choice
Assume all else remains the same. Which of the following statements is true?
A) The lower the dividend payout, the less a firm will have to reinvest.
B) The higher the dividend payout, the more discretionary financing a firm will require.
C) The lower the dividend payout, the more discretionary financing a firm will require.
D) The higher the dividend payout, the higher the retention percentage.
Correct Answer:
Verified
Correct Answer:
Verified
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