Question 8. When a firm raises its dividend pay-out ratio so its price-earnings ratio and market...

Transcribed Image Text:

Question 8. When a firm raises its dividend pay-out ratio so its price-earnings ratio and market price increase, then such action a) May indicate that the firm belongs to the insurance industry b) May possibly reduce future growth prospects c) May indicate that the firm is in the mature stage of its life cycle d) May indicate that the firm is currently under restructuring e) May indicate that the firm's stock is in the market index Question 8. When a firm raises its dividend pay-out ratio so its price-earnings ratio and market price increase, then such action a) May indicate that the firm belongs to the insurance industry b) May possibly reduce future growth prospects c) May indicate that the firm is in the mature stage of its life cycle d) May indicate that the firm is currently under restructuring e) May indicate that the firm's stock is in the market index