A firm that pays out high dividends will have a _____ amount of growth and pay...

A firm that pays out high dividends will have a _____ amount of growth and pay out most of its return as _____.

low, capital gain

low, dividends

high, capital gain

high, dividends

Solutions

Expert Solution

Answer:

Low, Dividends

A firm that pays out high dividends will have a _low_ amount of growth and pay out most of its return as _dividends_.

Explanation:

A high dividend payout means that the company is returning much of its profits to its investors which means a low level of growth rate as growth option implies invest the dividend payments in more securities to ultimately grow their money.

In such case, payout are in the form of dividends.

Capital gains imples appreciation in the value of stock price which is connected with growth of the company.

jeff jeffy answered 2 years ago

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