High-Growth Industries: Unleashing Potential and Opportunities

Characteristics of a High-Growth Industry

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What would be indicative of a high-growth industry?

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A. B. C. D. E. F.

A

In order to sustain a high rate of growth in earnings and dividends, a firm will needfinancing and if a large cash dividend is paid, it gives up one source of financing.

Theresult being low payout of dividends for these high-growth companies.