Asked by Rimiya Sharma on May 16, 2024
Verified
A corporate investor would likely prefer a firm with a high dividend payout rate.
Corporate Investor
An entity that invests its own funds in various financial instruments, often with the aim of owning a significant stake in another company.
Dividend Payout
The portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.
- Ascertain the preferences of investors concerning dividend payouts.
Verified Answer
KF
Kfish FisherMay 16, 2024
Final Answer :
True
Explanation :
Corporate investors often prefer firms with high dividend payout rates because dividends provide a direct return on their investment, which can be particularly attractive for investors seeking regular income or those who value the signal of financial health and profitability that high dividends can represent.
Learning Objectives
- Ascertain the preferences of investors concerning dividend payouts.
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