The amount of dividends a company pays will affect the ________ it has to finance future growth.
A) debt
B) retained earnings
C) current liabilities
D) current ratio

Question

Quizplus · Accepted Answer

Dividends reduce the amount of retained earnings a company has, which is a source of financing for future growth. Therefore, the lower the amount of dividends paid, the more retained earnings a company has to finance growth.

The Amount of Dividends a Company Pays Will Affect the ________