Homework Help: finance

Posted by deedra on Saturday, April 11, 2009 at 10:40am.

A rapid rate of Growth in sales may require

A. sales forcasts to be made less frequently

B. higher dividend payments to shareholders

C. the firm to be more lenient with credit customers

D. increased borrowing by the firm to support the sales increase

Wouldn't the answer to this problem be B?

finance - drwls, Saturday, April 11, 2009 at 11:13am
Not at all. Rapidly growing companies are traditinally less lielly to pay large dividends. They'd rather use their profits to fund expansion or acquisitions.

D. is probably the correct answer

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