A Valid Reason for a Firm to Reduce or Eliminate

question 31

True/False

A valid reason for a firm to reduce or eliminate its cash dividends is if the firm can raise new capital easily at a very low cost.

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Definitions:

Profitability

The degree to which a business or activity yields profit or financial gain.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the diverse parts of an organization.

Marketing Plan

a comprehensive document outlining a company's strategy for promoting its products or services, including details on target markets, positioning, marketing mix, and budget.

Expense Forecast

Expense Forecast refers to projecting future business expenses over a specific period based on historical data and expected future activities, helping in budget planning and financial management.