Which of the following type of firms are most likely to payout cash dividends?

Question

Quizplus · Accepted Answer

Large mature firms are most likely to payout cash dividends as they have stable earnings and cash flow, and their growth rates have slowed down. They may not have many attractive investment opportunities that can generate high returns, so they choose to reward their shareholders by distributing part of their profits as dividends. Rapidly growing firms and firms expanding their operations may reinvest most of their profits to finance their growth, while firms encouraging innovation may need to retain earnings to fund their research and development activities.

Which of the Following Type of Firms Are Most Likely