A firm's dividend policy involves a trade-off between:
A)growth versus no growth in investment.
B)high share price versus low share price.
C)internal versus external financing of investment.
D)a large asset base and a small asset base.

Question

Quizplus · Accepted Answer

A firm's dividend policy often involves a trade-off between using earnings to pay dividends (external financing) and reinvesting them in the business (internal financing). This impacts how much the firm can grow and invest internally without needing to seek external funds.

A Firm's Dividend Policy Involves a Trade-Off Between