mumukada Wrote: ------------------------------------------------------- > Dwight Wrote: > -------------------------------------------------- > ----- > > I say A for # 1 - bird in the hand theory. > Cash > > is more valuable than the future potential > > earnings of equity in the firm. Not sure about > > this one though, I just think C is the easy > answer > > and he said this is a tricky question. > > > > For # 2: I agree with D. Low growth/mature > > equals high dividend as was already stated. > > > > EDIT: OK so I posted my answer right as he > posted > > the correct one. I’ll agree with C for the > first > > problem but that was not a tricky question > then! > > > hahaha…sorry Dwight! I didn’t mean to throw you > off there by implying the question was tricky…I > thought it was an easy question…yet missed the > minute details 
that’s all! No worries sir! Good practice questions!
C D
low dividend payout means High Retention Rate G= RR * ROE (higher retention means higher growth) so D