Which of the Following Will NOT Increase a Company's Dividend

question 35

Multiple Choice

Which of the following will NOT increase a company's dividend payments?

• A) It can issue more shares.
• B) It can increase its earnings.
• C) It can decrease the number of shares outstanding.
• D) It can increase its dividend payout rate.

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Retained Earnings

Profits that a company keeps or reinvests after dividends are paid out to shareholders, often used for research, development, debt reduction, or other investments.

Trade Secrets

Trade secrets are confidential pieces of information that provide a business with a competitive edge, such as formulas, practices, designs, instruments, or patterns that are not generally known or reasonably ascertainable.

Catgut

A type of cord previously made from the natural fibers in the intestines of sheep or other animals, commonly used in making strings for musical instruments or surgical sutures.