Cash dividends are offered to shareholders in lieu of increasing the stock's price.

Name: Cash dividends are offered to shareholders in lieu of increasing the stock's price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash dividends are a way to distribute profits to shareholders, but they do not directly aim to substitute for an increase in the stock's price. Instead, they provide shareholders with a return on their investment independent of stock price movements.

Cash Dividends Are Offered to Shareholders in Lieu of Increasing