Firms Prefer Not Paying Dividends If It Avoids Selling New

question 78

True/False

Firms prefer not paying dividends if it avoids selling new stock, because retained earnings cost less than new equity.

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Definitions:

Histogram

A graphical representation of data where the frequency of the variables is represented by bars of different heights.

Rules Of Thumb

Simple, practical guidelines or principles, typically based on experience rather than theory, used to make judgments and decisions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to rapid judgements or problem-solving strategies.

Displacement

A defense mechanism where mind shifts emotional impulses from a real object to a safer substitute target.