As a company moves through its life cycle from pioneering development to decline, typically: a. Its payout ratio increases, its dividend yield decreases, and its price/earnings ratio increases b. Its payout ratio increases, its dividend yield increases, and its price/earnings ratio decreases. c. Its payout ratio decreases, its dividend yield increases, and its price/earnings ratio increases. d. Its payout ratio decreases, its dividend yield decreases, and its price/earnings ratio decreases. Is this obvious?
I would say it should be B
B?
I think B as well
same here
what happens during rapid acceleration and maturity stages? Ignore that?
Wow, I have no idea! I would think the computer wouldn’t be paying out anything and plowing it back into the company…
In pioneering the company reported very low earning and NI (or probably losses), as the company develop, earning increases as well earning at an accellerated ratio, while at mature stage, the company activity stabilize.
B, but without explaining you don’t get the cookie.