The Residual Theory of Dividend Policy Asserts That

question 11

Multiple Choice

The residual theory of dividend policy asserts that:

• A) sufficient dividends are paid to maintain a stable total dividend payment with any residual invested internally by the firm.
• B) sufficient dividends are paid to maintain a stable dividend payout ratio with any residual invested internally by the firm.
• C) dividends are paid out of the residual remaining after internal investments by the firm.
• D) dividend payments are adjusted to maintain dividends at a constant percentage of total cash flows.

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Definitions:

Predictor

A variable or factor that is used to forecast or anticipate future events or outcomes.

Future Job Behavior

Predicted actions or reactions of employees in their job roles based on various predictors like personality traits, previous job performance, and workplace environment.

Length Of Employment

The duration for which an individual has been continuously employed by the same employer, often affecting benefits, seniority, and other employment considerations.

Chronological Age

This is the exact age of an individual as measured in years from the date of birth to the current date.