Trenton Publishing Follows a Strict Residual Dividend Policy

question 6

Multiple Choice

Trenton Publishing follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share?

• A) The firm's net income increases.
• B) The company increases the percentage of equity in its target capital structure.
• C) The number of profitable potential projects increases.
• D) Congress lowers the tax rate on capital gains. The remainder of the tax code is not changed.
• E) Earnings are unchanged, but the firm issues new shares of common stock.

---

Definitions:

Gulf of Mexico

A large ocean basin located between Mexico, the United States, and Cuba, known for its biodiversity and economic importance in oil production.

Oxygen Supplies

Refers to the availability and provision of oxygen for medical treatment, industrial use, or scientific research.

Uninhabitable Areas

Regions or zones that are unsuitable or unsafe for human habitation due to extreme conditions or contamination.

Paraphrase

To paraphrase is to restate someone else's ideas, message, or text in your own words, often to clarify meaning or to simplify complex information.