Which of the Following Would Be a Reason for a Company

question 146

Multiple Choice

Which of the following would be a reason for a company to restrict its cash dividends or treasury stock purchases?

• A) Because the company needs treasury stock to offer as performance incentives to upper management
• B) In order to give shareholders stock dividends
• C) Due to the desire of shareholders to retain the company's earnings for future growth and capital expenditures
• D) Due to requirements of lenders or creditors that companies maintain enough equity to meet their obligations

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