Question

The zeerocks corporation is a rapidly growing company that just experienced a very profitable quarter. the company's board of directors announced that they have decided not to pay a dividend to common stockholders. this suggests that

Answer 1

This suggests that the board of directors of the company have decided to reinvest its profits. When a company begin to make profits, it has two principal ways of utilizing the profits, it can distributes the profits among the business owners or it can reinvest the profits for more profits. Reinvesting the profits brings about higher returns on investments and increased shareholders' equity.