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27 Nov 2019

Generally low growth stocks pay:

a steady dividend stream.

erratic dividends.

low or no dividends.

decreasing dividends.

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Casey Durgan
Casey DurganLv2
8 Jan 2019
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Related questions

Generally, high growth stocks pay:

Multiple Choice

A. low or no dividends.

B. high, steadily growing dividends.

C. erratic dividends.

D. decreasing dividends.

Growth firms generally pay regular dividends to stockholders. True or false?

Which of the following statements about dividend is NOT true? _____ Bird-in-the-hand theory says that investors think dividends are less risky than potential future capital gains, so they like dividends. Tax preference theory indicates that low dividend payments mean higher capital gains. Capital gains taxes are lower than dividend taxes, and they can be deferred. So investors prefer low-dividend-payments or non-dividend-payments firms. Based on the Bird-in-the-hand theory, a firm should set high dividend payout ratio to increase firm value. Based on the Tax preference theory, a firm should pay more dividends to increase firm value.

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