True or False? Reducing dividend payments is one way to reduce a firm's reliance on external...

Question

Question

True or False? Reducing dividend payments is one way to reduce a firm's reliance on external funding.

Answer 1

Answer #1

Please find below the solution.. let me know if you need any clarification..

statement is true : Reducing dividend payments is one way to reduce a firm's reliance on external funding.

By paying lower dividend firm can use the generated profit as source of funding which will reduce the reliance on external funding

Answer 2

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