Companies with higher growth pattern are likely to __________.

Pay lower dividends

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Pay higher dividends

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Dividends are not affected by growth considerations

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None of the Above

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Solution

The correct option is B Pay lower dividends
Companies with higher growth rate are likely to pay lower rate of dividend. Companies with higher growth rate would prefer to plough back its profit for the growth of the company which would result in long term benefits rather than distributing dividends which is temporary.

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Similar questions

Companies with a higher growth potential are likely to

(a) pay lower dividends

(b) pay higher dividends

(d) none of the above

Companies with a higher growth pattern are likely to:

Companies with higher growth paternal are likely to

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