Start learning →

When a firm earns less than shareholders require, Walter would have it

Araise fresh equity
Bmerge with a rival
Cpay out its profit
Dretain all profit
Answer & Solution
Correct answer: C. pay out its profit
Retained money would earn less than shareholders can earn elsewhere, so it is better handed back as dividends.
Practise this question with Quill — CA Inter →

Keep practising Dividend Policies

Browse all Dividend Policies questions for CA Inter, or explore more Financial Management topics.

Start a Dividend Policies lesson →
Related questions