Optimum or Maximum Corporate Growth under Uncertainty

  • John Lintner


Consider a firm selling in a less than perfectly competitive market. It produces and markets a more or less closely related set of products to customers who have varying degrees of preference for its output in the face of competitors’ offerings. It has an ‘image’, an established reputation, and a history. It has a vigorous, enterprising management who are charged with responsibility for the direction, allocation and use of the company’s resources. Its resources include its plants and a wide-ranging collection of equipment; its employees of all ranks and skills; the ‘goodwill’ of its established market position; and very importantly, the organization of its human and physical resources into effective economic units. This organization produces relatively efficient flows of work through the firm’s plants and distribution system; at the same time, it provides efficient flows of information to and from all operating and administrative levels for purposes of effective decision-making as well as control of operations and performance.


Dividend Payment Dividend Payout Retention Ratio Payout Ratio Optimal Dividend 
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Copyright information

© The President and Fellow of Harvard College 1971

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  • John Lintner

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