Question

Under which of the following circumstances is a company most likely to retain a higher portion of its earnings and reduce dividend payouts?

A Wharn the market price of its shares in trading at a premiuns to hack value
B When the return on equity is consistently low
C When the company has surplus cash and no visbio investrient opportunities
D When the company has limited access to external capital markets and significant reinvestment requirements
Practice Next

Relevant for Exams:

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)