Why does a relatively new firm often have a low dividend payout ratio? Why does a firm

Question:

Why does a relatively new firm often have a low payout ratio? Why does a firm with a substantial growth record and/or substantial growth prospects often have a low payout ratio?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...