When a company maintains a constant dividend policy, the company's growth rate has no bearing on the external financing needed.

Name: When a company maintains a constant dividend policy, the company's growth rate has no bearing on the external financing needed.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

A constant dividend policy implies that dividends are paid out consistently, but the company's growth rate affects its earnings and retained earnings, which in turn influence the external financing needed.

When a Company Maintains a Constant Dividend Policy, the Company's