FIN 351 CHAPTER 6 QUIZ 11 TO 15
11. Firms in the development stage finance their growth from internal cash flows
12. A frequent source of capital for profitable Stage I companies is venture capitalists
13. Due to intense needs for capital to fund growth, Stage I companies rarely pay cash dividends
14. Stock dividends are used to signal to investors that a company is not making any profits to distribute
15. The presence of cash dividends increases the ability of some institutional investors to invest in companies.