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Companies with good growth opportunities generally pay dividends that are:
ALarger
BUnchanged
CDoubled
DSmaller
Answer & Solution
Correct answer: D. Smaller
1. They retain more to finance investment.
2. So growth companies pay smaller dividends.
3. Non-growth companies pay more.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
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