Which of the Following Is the Least Likely Consideration That

question 121

Multiple Choice

Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend?

• A) Does the company have more cash than it has opportunities?
• B) Is the company's average number of common shares outstanding decreasing?
• C) Does the company have uses for cash that will increase its value?
• D) What are the company's cash needs?

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Definitions:

Growth In Assets

An increase in the value or quantity of the assets owned by a company or individual, which can contribute to increased wealth or investment capacity.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Top-Down Plan

An approach to business strategy and project planning where decisions are made at the highest level and communicated down the organizational hierarchy.

Scenario Analyses

The process of evaluating and analyzing possible future events by considering various alternative outcomes or scenarios.