A Firm Adopts a Residual Distribution Policy, Distributions Are Determined

question 4

True/False

a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget Therefore, the better the firm's investment opportunities, the lower its payout ratio should be.

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Definitions:

Progestin

A synthetic form of progesterone used in contraceptives and hormone therapy.

Vasectomy

A permanent method of birth control in which each vas deferens is severed or blocked off, thereby preventing sperm from entering the vas deferens and mixing with seminal fluids to form semen.

Prostate Gland

A muscular gland encircling the urethra that produces about one third of the seminal fluid.

Fem Cap

A brand of cervical caps, which are barrier methods of contraception worn inside the vagina to cover the cervix.