According to the Residual Theory of Dividends, If the Firm's

question 82

Multiple Choice

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.

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