Which of the Following Would Cause Dividends to Increase If

question 2

Multiple Choice

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

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

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Definitions:

Errors

Differences between observed values and the true values in data collection, analysis, or estimation.

Defects

Imperfections or faults in a product or process that deviate from desired specifications or standards.

Population

The entire pool from which a statistical sample is drawn, often referring to a total set of observations that can be analyzed.

Sample

A subset of individuals, items, or data taken from a larger population, utilized for the purpose of analysis and inference.