Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get _______ dividends.

Higher

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Lower

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Constant

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Solution

The correct option is A Lower
Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get lower dividends. Excessive ploughing back of profits will result in over capitalization which will in turn lead to decrease in ROI.

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Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get _______ dividends.

The correct option is A LowerExcessive ploughing-back may cause dissatisfaction among the shareholders as they would get lower dividends. Excessive ploughing back of profits will result in over capitalization which will in turn lead to decrease in ROI.

The correct option is A Lower
Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get lower dividends. Excessive ploughing back of profits will result in over capitalization which will in turn lead to decrease in ROI.