Which Two of the Following Are Possible Results of the Existence

question 30

Multiple Choice

Which two of the following are possible results of the existence of transaction costs?

• A) Mature 'cash cow' type firms choose a high payout rate.
• B) Dividends tend to gradually decrease during a firm's lifetime.
• C) Many young, rapidly growing firms with a need for investment finance have very low dividend payouts.
• D) Smaller companies tend to have higher dividends.

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Definitions:

Hormones

Powerful chemical substances secreted by the endocrine glands and carried through the body by the bloodstream.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including temperature control, thirst, hunger, and sleep cycles.

Menarche

The occurrence of the first menstrual period in adolescent females, marking a significant milestone in pubertal development.

Gonads

The organs in the body that produce reproductive cells; in males, these are the testes, and in females, the ovaries.