A company in the start-up stage of its life cycle is likely to: A) Pay a...
A company in the start-up stage of its life cycle is likely to: A) Pay a high dividend to attract potential investors B) Pay a high dividend because it has excess cash C) Repurchase its shares to use excess cash D) Pay no dividends because it has no excess cash E) Do a tender offer to take repurchase shares
Homework Answers
Start-up stage of any company is expansion. In this phase they reinvest their earnings to maximise their earnings which increases the firm value.
Hence, correct option is D.
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