If a Firm Uses the Residual Dividend Model to Set

question 63

True/False

If a firm uses the residual dividend model to set dividend policy,then dividends are determined as a residual after providing for the equity required to fund the capital budget.Under this model,the higher the firm's debt ratio,the lower its payout ratio will be,other things held constant.

Recognize the vicious cycle of poverty and how it hampers economic growth in DVCs.

Understand the importance of institutional changes, like land reform, in the economic development of developing nations.

Comprehend the mechanisms to break the vicious circle of poverty in developing nations, particularly through capital accumulation.

Recognize the significance of saving rates and their implications for investment and growth in developing countries.