Which of the following type of firms are most likely to pay cash dividends?
A)rapidly growing firms
B)firms encouraging innovation
C)large mature firms
D)firms expanding their operations

Question

Quizplus · Accepted Answer

Large mature firms, which have stable earnings and relatively less need for reinvestment, are more likely to pay cash dividends. Rapidly growing firms typically reinvest their earnings to support their growth, firms encouraging innovation need to allocate more resources to R&D and firms expanding their operations may need to retain earnings to finance their expansion plans.

Which of the Following Type of Firms Are Most Likely