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.

---

Definitions:

Blind Area

Part of the Johari window model, referring to information that others know about a person but the person is unaware of.

Johari Window

A cognitive psychological tool used to help people better understand their interpersonal communication and relationships.

Organizational Effectiveness

The extent to which an organization is productive and satisfies the demands of interested parties, such as employees, customers, and investors.

Human Relations

The study and management of how people interact in the workplace, aiming to improve job satisfaction, efficiency, and productivity.