QUESTION 12 The use of stock dividends by industries in the growth stage is for

Question

QUESTION 12 The use of stock dividends by industries in the growth stage is for what purpose? a. To dilute the ownership of current holders of equity. b. To maintain cash to pay off creditors c. To signal to investors that the company is profitable d. Because cash dividends would signal to investors that the company has reached the crossover point QUESTION 13 Industries in the maturity stage will have growth rates comparable to which of the following? a. Equal to the long-term trend in the gross domestic product (GDP) b. Double the long-term trend in GDP c. Less than the long-term trend in GDP d. The growth rate of the consumer price index (CPI)

Explanation / Answer

12)A
13)D

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