In order to reduce discretionary financing needed,a profitable company could decrease its dividend payout ratio.

Question

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By decreasing the dividend payout ratio, the company retains more earnings to reinvest in the business, reducing the need for discretionary financing (such as issuing debt or equity). This can improve the company's financial stability and reduce its reliance on external funding sources.

In Order to Reduce Discretionary Financing Needed,a Profitable Company Could