Which of the following firms is most likely to pay out a larger portion of their earnings to shareholders?

Question

Quizplus · Accepted Answer

Mature companies have usually already experienced growth and have a stable cash flow. Therefore, they are more likely to pay out dividends to their shareholders. Small, young, and growth companies often need to reinvest most of their earnings to fuel their expansion and maintain liquidity.

Which of the Following Firms Is Most Likely to Pay