Which of the following statements is correct?
A) The value of a company's share will decrease unless a dividend is paid every year
B) The value of a company's share will increase if a regular dividend is paid
C) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then dividends should be paid
D) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then there is a case for dividends not to be paid
Correct Answer:
Verified
Q4: Which of the following statements is false?
A)
Q5: The three main sources of funds for
Q6: Large company agrees to pay £1,750,000 to
Q7: An easy way for companies to raise
Q8: Retained earnings do not contribute towards financing
Q10: Preference shares are excluded in the calculation
Q11: A business can raise finance by selling
Q12: If receivables are increased and the time
Q13: Which of the following is not a
Q14: Large company agrees to pay £1,750,000 to
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