According to the residual theory of dividends, if the firm's equity need is less than the amount ofretained earnings, the firm would
A) pay no cash dividends.
B) not need to consider its dividend policy.
C) declare a dividend equal to the remaining balance.
D) borrow to pay the cash dividend.
Correct Answer:
Verified
Q19: The most commonly used dividend policies are
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A)
Q22: The problem with a constant-pay-out-ratio dividend policy
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A) grossed-up by 25% before
Q25: The shareholder receiving a stock dividend receives
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Q26: When common stock is repurchased and retired,
Q27: Paying a stock dividend_the retained earnings account
A)
Q28: Among owner considerations in the establishment of
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