Asked by Diamondz R-blissful on Apr 24, 2024
Verified
A valid reason for managers not to pay no cash dividend is a situation where the firm has few growth opportunities for which funds are required.
Cash Dividend
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.
Growth Opportunities
Prospects or opportunities for a business or investment to expand, leading to increased profits.
- Identify the factors prompting companies to modify their dividend strategies.
Verified Answer
JV
Jocelyn valdez6 days ago
Final Answer :
False
Explanation :
A valid reason for managers not to pay a cash dividend is actually when the firm has many growth opportunities for which funds are required, not few.
Learning Objectives
- Identify the factors prompting companies to modify their dividend strategies.