Asked by Denia Drake on May 16, 2024
Verified
Avoiding the need to sell new equity is a goal in a compromise dividend policy.
New Equity
New equity refers to funds raised by a company through the issuance of additional shares of stock.
Compromise Policy
A strategy aimed at finding a middle ground among different stakeholders' interests or policy alternatives.
- Acquire knowledge about the principle and effects of a compromise dividend approach.
Verified Answer
RM
Rakhmatjon MakhamadjonovMay 17, 2024
Final Answer :
True
Explanation :
A compromise dividend policy aims to balance the benefits of distributing profits to shareholders through dividends and the need to retain earnings for reinvestment in the company, thus avoiding the need to raise additional funds through selling new equity.
Learning Objectives
- Acquire knowledge about the principle and effects of a compromise dividend approach.
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