Multiple Choice QuestionA growth company generally:Multiple choice question.pays a percentage of your investment dividend.pays dividend equal to industry average dividend.pay little or no dividend.pays a higher than average dividend.
Question
Multiple Choice QuestionA growth company generally:Multiple choice question.pays a percentage of your investment dividend.pays dividend equal to industry average dividend.pay little or no dividend.pays a higher than average dividend.
Solution
The correct answer is: pay little or no dividend.
Explanation: Growth companies are typically characterized by a high rate of growth in operations, earnings, and revenues. They prefer to reinvest their earnings back into the company to fuel further growth, rather than paying out dividends to shareholders. Therefore, they usually pay little or no dividend.
Similar Questions
Multiple Choice QuestionA growth company has:Multiple choice question.a lower debt to equity ratio.better than average earnings potential.a higher debt to equity ratio.worse than average earnings potential.
Multiple Choice QuestionProfits a company keeps and reinvests in the firm are called ______.Multiple choice question.dividendscorporate sharesretained earningscollateral
Fill in the Blank QuestionFill in the blank question.A growth company is a company that has better than average earnings potential and is expected to have revenue that can be high or low, but is .
Multiple Choice QuestionWhich term refers to the percentage of earnings a company paid to stockholders in dividends?Multiple choice question.par valuepayout ratiodividend yieldcost index
Multiple Choice QuestionThe purchase of one company by another, usually by buying its stock, is called a(n) Blank______.Multiple choice question.dividendjoint ventureacquisitionmerger
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.