investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.

Name: investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Investors may prefer firms that retain earnings for reinvestment in growth opportunities, potentially leading to higher future returns and stock prices.

Investors Prefer Firms That Retain Most of Their Earnings, Then