A valid reason for managers not to pay no cash dividend is a situation where the ﬁrm has few
growth opportunities for which funds are required.

Name: A valid reason for managers not to pay no cash dividend is a situation where the ﬁrm has few growth opportunities for which funds are required.
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Question

Quizplus · Accepted Answer

If a firm has few growth opportunities, it may choose to pay dividends to return excess cash to shareholders, as it doesn't need to retain earnings for investment.

A Valid Reason for Managers Not to Pay No Cash