CUET Preparation Today
| Under which of the following circumstances a company is not likely to declare a higher dividend? |
When the earnings of the company are high When a company has a lucrative forthcoming business opportunity When the cash flow position of the company is strong None of the above |
| When a company has a lucrative forthcoming business opportunity |
| Growth Opportunities: Companies having good growth opportunities retain more money out of their earnings so as to finance the required investment. The dividend in growth companies is, therefore, smaller, than that in the non– growth companies. |
