A Valid Reason for Managers Not to Pay No Cash

question 361

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:

All-Inclusive Concept

A pricing strategy or business model where a single price includes all related services and products.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Comprehensive Income

An inclusive income measurement that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Gross Amounts

The total amounts before any deductions are made, such as discounts, expenses, or taxes.