Which one of these firms would you most expect to have the highest payout percentage?
A) New technology firm
B) Mature firm in a declining industry
C) Mature firm with limited growth opportunities
D) Rapidly expanding firm in a growth industry

Question

Quizplus · Accepted Answer

Mature firms with limited growth opportunities often have fewer profitable investment opportunities, leading them to return more cash to shareholders through dividends, resulting in a higher payout percentage.

Which One of These Firms Would You Most Expect to Have