Which of the Following Would Cause Dividends to Decrease If

question 79

Multiple Choice

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

• A)The firm has more positive NPV projects.
• B)The firm uses less debt in its capital structure.
• C)Net income decreases.
• D)All of these would cause dividends to decrease.

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Definitions:

Foreign Bonds

International bonds issued in a single country, usually denominated in that country’s currency.