A large regular dividend always denotes a firm with a high level of cash that also has many new project alternatives.

Question

Quizplus · Accepted Answer

A large regular dividend may indicate that a company has excess cash, but it does not necessarily indicate that it has many new project alternatives. A company may choose to pay a large dividend to appease shareholders or due to tax reasons, even if it does not have many new projects in the pipeline.

A Large Regular Dividend Always Denotes a Firm with a High