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Which of the Following Is True About a Growth Stock

Question 16

Multiple Choice

Which of the following is true about a growth stock?


A) It pays a fixed amount of dividends every year.
B) It has voting rights and generally pays a fixed amount of interest each year until maturity.
C) It pays large and relatively constant dividends each year.
D) It pays cumulative dividends at the time of maturity.
E) It generally pays little or no dividends because the firm retains most of its earnings to fund developmental opportunities.

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