The Dividend Decision Is Whether to Pay_____ or _____ for Growth

question 43

Multiple Choice

The dividend decision is whether to pay_____ or _____ for growth, both of which benefit stockholders.

• A)cash dividends or retain earnings
• B)cash or bonuses
• C)stockholders in cash or issue new stock
• D)stock dividends or hold onto cash

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Definitions:

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain that can be secured.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Dominant Strategy

In game theory, a strategy that is best no matter what the opposition does.

Players

In an economic context, players refer to individuals or entities actively participating in a market or economic model.