Assume That Company a Is Doing Quite Well and Has

question 12

Multiple Choice

Assume that company A is doing quite well and has healthy cash flow from operating activities. Its Board of Directors has decided to not pay any dividends to its shareholders for the foreseeable future. This is most likely because

• A) the company wishes to reinvest its cash for future growth opportunities.
• B) it would increase the company's debt to equity ratio.
• C) it would reduce retained earnings.
• D) because it would cause a mass selloff of the company's shares.

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Definitions:

Emotional Experience

A complex state of feeling resulting in physical and psychological changes that influence thought and behavior.

Behavioural Component

Refers to the actions or reactions of an individual in response to external or internal stimuli.

Achievement Motivation

The drive or desire to accomplish goals, excel, and attain success as defined by the individual or society.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.