Which of the following would be most likely to lead to a decrease in a firm's dividend payout ratio?

A. Its access to the capital markets increases.
B. Its R&D efforts pay off, and it now has more high-return investment opportunities.
C. Its accounts receivable decrease due to a change in its credit policy.
D. Its stock price has increased over the last year by a greater percentage than the increase in the broad stock market averages.
E. Its earnings become more stable.


Answer: B

Business

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