All Else the Same, an Increase in a fiRm's Dividend

question 279

True/False

All else the same, an increase in a firm's dividend payout ratio will decrease its internal growth rate.

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Definitions:

Normal Credit Balance

The usual balance side of an account that increases its value, typically used for liabilities, revenues, and equity accounts.

Withdrawals

Money taken out from a business by its owner(s) for personal use, reducing the owner's equity in the business.

Assets

Economic resources owned by a business or individual that are expected to benefit future operations.

Expenses

Financial outlays or obligations incurred by a company as part of its operational activities, leading to a reduction in owners' equity.