Trenton Publishing Follows a Strict Residual Dividend Policy

question 17

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) Earnings are unchanged, but the firm issues new shares of common stock.

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Definitions:

Certification Election

A process involving a vote by employees to determine whether they wish to be represented by a particular labor union.

Representative

An individual chosen or elected to act and speak on behalf of a larger group, often in negotiating or legislative contexts.

Negotiations

The process of discussing terms and conditions between two or more parties with the aim to reach an agreement or compromise.

Authorization Card Campaign

A drive by a labor union to collect signed cards from employees indicating their interest in union representation, often as a preliminary step toward a unionization vote.