Often the payment of dividends follows the life cycle of a firm; growing firms reinvest profits while mature firms pay dividends.

Question

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This statement is generally true as growing firms tend to focus on reinvesting their profits to fuel further growth, while mature firms prioritize paying dividends to their shareholders. However, there may be exceptions to this rule depending on a company's individual circumstances and strategies.

Often the Payment of Dividends Follows the Life Cycle of a Firm;