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What Does a Reflective Ceiling Plan Include

question 6

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What does a reflective ceiling plan include?


Definitions:

Homemade Dividend Policy

A strategy in which investors create their own dividend policy by selling a portion of their portfolio of equities.

Residual Dividend Approach

A method used by companies to determine the dividend payments based on the residual or leftover earnings after all operational and investment costs have been met.

Regular Cash Dividend

is a fixed amount paid per share to shareholders, typically on a quarterly basis, from a company's earnings.

Residual Dividend Approach

A policy for setting a company's dividend payment, where the dividend paid is based on earnings minus funds the firm retains to finance the equity portion of its capital budget.

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