The dividend decision is whether to pay_____ or _____ for growth, both of which benefit stockholders.

A) cash dividends or retain earnings
B) cash or bonuses
C) stockholders in cash or issue new stock
D) stock dividends or hold onto cash

Dividend Decision

The decision by management regarding the portion of earnings paid to shareholders as dividends. The alternative is to retain the money, investing it in the company for future growth.

Cash Dividends

Distributions made to shareholders by a company, often in the form of profit sharing.

Retain Earnings

Profits kept in the company to reinvest in the business or pay down debt, not distributed to shareholders.