If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay a. dividends only out of funds raised by borrowing money (i. e., issue debt). b. no dividends to common stockholders. c. dividends only out of funds raised by the sale of new common stock. d. no dividends except out of past retained earnings.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statements regarding the exercise of options contracts are TRUE? The exercise of equity options settles the next business day. The exercise of equity options settles in 2 business days.
Answers (1)
Which of the following is a quality of a money system of exchange? A. credit is earned and then people can use that credit to make purchases B. uses coins or other currency chosen by the government C.
Answers (1)
An inkjet printer output is streaked. what would you do?
Answers (1)
Create a conversational but professional tone in letters, e-mail messages, instant messages, and memos by Group of answer choices choosing a clear format and effective document layout. using emoticons.
Answers (1)
What is the term for the practice of gathering data and ensuring that it is uniform, accurate, consistent, and complete, including such entities as customers, suppliers, products, sales, employees, and other critical entities that are commonly
Answers (1)
New Questions in Business
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)
Sun Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2007. What is the annual dividend on the preferred stock? a. $60 per shareb. $30,000 in totalc.
Answers (1)
a risk averse investor, which of the following four otherwise identical investment would you prefer? A. Security W, which exhibits a standard deviation of 2% and offers an average return of 12%. B.
Answers (1)
n a company's merit pay program, an individual's compa-ratio represents the individual's pay relative to company's average pay for that position. the individual's worth versus that of others in the organization.
Answers (1)
Some interview questions are designed to rattle you to see how you deal with stress. True or false.
Answers (2)