Pat starts a business called ValueCentral.com,the concept takes off,and the company has an IPO and goes public.The company is growing very rapidly and trying to keep up with customer demand.What type of dividend is this company likely to pay its stockholders?
A) A large dividend due to high earnings
B) An average size dividend
C) Very small or no dividend
D) All profits to be paid as dividends
E) As no stock is involved,dividends irrelevant

Question

Quizplus · Accepted Answer

A rapidly growing company like ValueCentral.com will likely prioritize reinvesting profits to fuel its growth rather than paying out dividends to shareholders. Therefore, a very small or no dividend is the best choice.

Pat Starts a Business Called ValueCentral