A Valid Reason for Managers Not to Pay No Cash

question 270

True/False

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.

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Definitions:

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, designed to pay off the debt over a set period.

Effective Rate

The actual interest rate an investor receives or pays on a financial product, factoring in the effects of compounding.

Amortization Schedule

A table detailing each periodic payment on an amortizing loan, including breakdowns of principal and interest.

Amortizes Loans

Loans for which periodic payments are made that include both interest and principal, gradually reducing the outstanding balance.