The Zeerocks Corporation is a rapidly growing company that just experienced a very profitable quarter. The company's board of directors announced that they have decided not to pay a dividend to common shareholders. What does this suggest?
A) The board has violated its obligation to the company's owners, making it likely that the company will be sued.
B) The board has decided to reinvest the profits.
C) The company had some large interest payments it had to make.
D) Preferred shareholders also will not receive a dividend.
Correct Answer:
Verified
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