A firm with an aggressive expansion policy would seek investors who favor income generated by the cash stream of dividends rather than investors who favor income through capital appreciation.

Question

Quizplus · Accepted Answer

A firm with an aggressive expansion policy would prioritize reinvesting profits into growth opportunities rather than distributing them as dividends. Therefore, the firm would likely seek investors who prioritize capital appreciation rather than income generated by dividends.

A Firm with an Aggressive Expansion Policy Would Seek Investors