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Which of the following statements are correct? 1. Companies with high growth rates tend to have high dividend-payout ratios because they want to attract more
Which of the following statements are correct? 1. Companies with high growth rates tend to have high dividend-payout ratios because they want to attract more investors. II. A reverse stock split results in an increase in the number of shares of outstanding common stock and a decrease in the par value per share II. A forward stock split results in an increase in the number of shares of outstanding common stock and a decrease in the par value per share. 1.Companies with low growth rates tend to have high dividend-payout ratios because they want to attract more investors I and II only I and IV only I and Ill only III and IV only Which of the following is a benefit of debt to the firm? interest payments are tax deductible interest payments can be made at the discretion of the company interest payment is optional for the firm interest and principal obligations are fixed by contract
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