Which of the Following Would Cause Dividends to Decrease If

question 22

Multiple Choice

Which of the following would cause dividends to decrease if the firm was using the residual dividend model?

• A)The firm has fewer positive NPV projects.
• B)The firm's dividend payout ratio decreases.
• C)Net income decreases.
• D)All of these would cause dividends to decrease.

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Definitions:

Sleep

A natural, reversible state of reduced responsiveness to external stimuli, essential for human health and well-being.

Positive Outlook

An optimistic attitude that focuses on expecting good and positive outcomes.

Anorexia Nervosa

Loss of appetite; with anorexia nervosa, loss of appetite for food not explainable by disease, which may be a part of psychosis.

Hypokalemia

A condition where there is a low level of potassium in the bloodstream.