Future Investment Plans Are Important Determinants of Payout Policy Because

question 62

Multiple Choice

Future investment plans are important determinants of payout policy because of:

• A)signalling to investors.
• B)costs of raising new capital.
• C)stock price depreciation.
• D)debt holder restrictions.
• E)their effect on cash retention.

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Definitions:

Motives

Internal processes that energize, direct, and sustain behavior towards fulfilling a need or achieving a goal.

Needs

Something that is necessary to survive or thrive.

Need

A requirement essential for an organism's survival, growth, or well-being.

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for human survival.