Companies with a higher growth pattern are likely to: Options: A . &nbsp pay lower dividends B . &nbsp none of the above C . &nbsp dividends are not affected by growth considerations D . &nbsp pay higher dividends

Companies with a higher growth pattern are likely to:

Discussion Forum : Financial Management

Question -

Companies with a higher growth pattern are likely to:

Options:

A . pay lower dividends

B . none of the above

C . dividends are not affected by growth considerations

D . pay higher dividends

Answer: Option A
:
A

Companies with higher growth opportunities tend to retain more money out of their earnings so as to finance the required investments. Therefore, higher growth prospects result in lower dividend payment.

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