Question 16

ABC Corp is a startup in the electric vehicle industry. The electric vehicle industry requires a lot of investment in new products in order to succeed, and earnings tend to be highly volatile for these manufacturers. Which of the following best describes ABCs likely dividend policy?

		ABC will likely pay out less in dividends and is less likely to increase dividends.
		ABC will likely pay out all its net income as dividends.
		ABC will likely pay more in dividend and is more likely to increase dividends.
		ABC will likely pay less in dividends but will increase this level rapidly.