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प्रश्न
| CVX Ltd. was a leading company, manufacturing home appliances like food processors, juicers and mixer grinders. The company was earning good profits and was paying high dividends to its shareholders consistently. The company now decided to manufacture soup-making machines, pop-up toasters and electric irons. The company wanted to enter into emerging markets out of India also. Entering these markets will require additional capital investment which will facilitate in production and distribution infrastructure etc. For this, the management decided to retain money out of their earnings to finance the required investment and distribute smaller dividend to the shareholders. |
The factor affecting dividend decision which was kept in mind by the management of CVX Ltd. for entering into emerging markets and launching new products was:
पर्याय
Amount of Earnings
Stability of Earnings
Stability of Dividends
Growth Opportunities
MCQ
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उत्तर
Growth Opportunities
Explanation:
When a company has growth potential, it keeps more of its revenues rather than paying dividends to support development into new markets and products. This choice indicates that management valued growth potential.
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