Quiz Ch 14 – T/F Reevaluating Dividend Policy Amid Full Earnings Dividend and Reinvestment

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Should a company distribute all earnings as dividends, and shareholders choose to reinvest all dividends, it would be prudent for the company to review its dividend policy and contemplate a potential reduction in the dividend payout ratio.

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  • Search Terms: a. b. false true a all and as company dividend dividends earnings elect firm have if its lower move of out payout pays policy possibly ratio. reconsider reinvested, should stockholders the their then to
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