A firm in the early stages of its industry life cycle will likely have ________.

Question

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A firm in the early stages of its industry life cycle is likely to have low dividend payout rates as it needs to reinvest its profits back into the business to fuel its growth and establish its position in the market. This allows the firm to allocate its resources towards research and development, marketing, and capital expenditure. As the firm matures, it may increase its dividend payout rates to reward shareholders.

A Firm in the Early Stages of Its Industry Life