Explain the relationship between company size and dividend policy.
What will be an ideal response?
Management's dividend policy indicates the company's growth stage. A new company may not pay a dividend. A developing company may pay a small dividend. A mature company typically pays a larger dividend. The smaller the company the greater the need to retain earnings to help the company grow, so smaller companies do not typically pay dividends. Larger companies can afford to share a portion of their earnings
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A trial balance is a(an)
a. optional financial statement used only by accountants. b. financial statement which can be used in place of a balance sheet. c. list of accounts and their balances taken from the chart of accounts. d. document used to prove the equality of debits and credits in the general ledger.
In the case of air carriers, the cost of goods sold section of the income statement looks similar to that of a steel manufacturer
Indicate whether the statement is true or false
A firm is considering whether to continue to buy a particular component or to make the component themselves. There is no fixed cost associated with buying the component, but each component costs $17 to purchase. If the firm makes the component, it will incur a fixed cost of $5,000, but will be able to produce each component for $10. Which decision below is correct?
a. Make if estimated demand is less than 714.3 units b. Buy if estimated demand is greater than 5,000 units c. Make if estimated demand is greater than 714.3 units d. Buy if estimated demand is greater than 714.3 units
Depending upon its enabling statute, an agency charged with protecting the public may
have the right to represent the public and seek civil and/or criminal penalties against wrongdoers. a. True b. False