Typically, all other things equal, a profitable company that pays little or no dividends:
A) is a bad investment.
B) will reinvest profits which can lead to greater growth potential.
C) will experience relatively stable stock prices over time.
D) will appeal to investors who desire distributions of profit.

Question

Quizplus · Accepted Answer

A profitable company that pays little or no dividends is likely to reinvest profits into the company, which can lead to greater growth potential in the future. This can make it a good investment choice for investors who are looking for long-term growth rather than immediate profit distributions.

Typically, All Other Things Equal, a Profitable Company That Pays